Effect of Organizational factors on electronic tax system usage by Employees of Kenya Revenue Authority in Nairobi County, Kenya

Abstract

The usage of the electronic tax system by the Kenya Revenue Authority employees is very low and institution has not yet exploited the full potential of the system. This study sought to investigate the effect of organizational factors on electronic tax system usage by employees of Kenya Revenue Authority. Specific objectives were to determine the effect of training, management support, incentives and KRA policy on electronic tax system usage by employees of Kenya Revenue Authority. The study was anchored on the theory of reasoned action and Technology Acceptance Model. Explanatory research design was employed. The target population was 1546 Kenya Revenue Authority employees within Nairobi County. Simple random sampling was used to select a sample of 317 respondents. Structured questionnaires were used to collect data. Data was analyzed using descriptive and inferential statistics. Results revealed an R-square value of 46.7%. Findings further indicated that training (β= 0.183, P<0.05) had a positive and significant effect on electronic tax system usage; management support (β= 0.173, P <0.05) had a positive and significant effect on electronic tax system usage; incentives (β= 0.15, P <0.05) had a positive and significant effect on electronic tax system usage; and KRA policy (β= 0.387, P<0.05) had a positive and significant effect on electronic tax system usage by employees of Kenya Revenue Authority. The study concluded that the most significant predictor of electronic tax system usage was KRA policy, training, management support and incentives in that order. The study recommended that Kenya Revenue Authority management should organize frequent trainings on electronic tax system usage; focus on enhancing resource allocation, management involvement, and monitoring and evaluation; focus on enhancing: bonuses, salary increment, promotions and recognition; and focus on enhancing clarity, appropriateness, and efficiency of KRA policy. The study makes significant contribution to policy, theory and practice in the field of tax administration.