Effect of Revenue Mobilization on the Service Delivery Efficiency of the County Governments in Kenya

John Kirika Kamau^1, , Joshua Matanda¹ and Florence Memba¹

¹School of Business, Department of Economics, Accounting and Finance, Jomo Kenyatta University of Agriculture and Technology, P.O. Box 62000, 00200, City Square, Nairobi, Kenya

Cite this paper:
John Kirika Kamau, Joshua Matanda and Florence Memba. Effect of Revenue Mobilization on the Service Delivery Efficiency of the County Governments in Kenya. Journal of Finance and Economics. 2025; 13(3):139-146. doi: 10.12691/jfe-13-3-6

Abstract

The public sector, and more specifically the civil service, holds an indispensable position in ensuring the effective provision of essential public services, which are fundamental to the functioning of a nation’s economy. The primary aim of this research was to investigate how revenue mobilization influences the efficiency of service delivery within Kenya’s county governments. The study was anchored on Relative Income Theory. The target population comprised all 47 counties. Secondary data was obtained from audited county financial statements covering the fiscal years 2013/2014 to 2020/2021. For data analysis, STATA software version 27.0 was employed to generate descriptive statistics such as percentages, frequency distributions, measures of central tendency, and measures of dispersion. The interpretation of results was based on both descriptive statistics and inferential techniques, including correlation analysis, univariate regression analysis, tests for multicollinearity, autocorrelation, heteroscedasticity, normality, and panel data regression analysis. The findings revealed a statistically significant positive relationship between own-source revenue and revenue mobilization among county governments. Partnerships, collaborations, and grants also showed a positive relationship, though their effect on service delivery efficiency was statistically insignificant.

Keywords:
Revenue mobilization Service delivery efficiency

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