EFFECTS OF ELECTRONIC PAYMENT SYSTEMS ON REVENUE COLLECTION PERFORMANCE IN NANDI COUNTY GOVERNMENT, KENYA

Abstract

County governments struggle to gather enough own-source revenues to fund their operations and provide services. To increase revenue and reduce leaks, an electronic payment system was implemented. Nandi County frequently misses revenue objectives. This study examines how electronic payment systems affect Nandi County Government revenue collection. The goals were to assess how e-banking, mobile payments, and web payment control affect revenue collection. Innovation diffusion theory, resource-based view theory, revenue diversification theory, systems theory, and technology adoption model underpinned the study. This study used descriptive and correlational methods. The target population was 135 workers. County revenue officers collected the data. The census method was utilized. A Uasin Gishu County pilot survey was undertaken. We collected quantitative and qualitative data using questionnaires and observation schedules. Data was analyzed using descriptive and inferential statistics, including correlation and regression. The descriptive analysis of quantitative data used mean scores, percentages, and standard deviation, while the inferential analysis used Pearson's product moment correlation and regression models. E-banking, mobile payments, and web payment control systems improved revenue collection dramatically. E-banking promotes electronic cash transfers to county accounts, delivers bank statements online, RTGS payments, streamlines operations, improves compliance, speeds transactions, increases transparency, and lowers costs and errors. Mobile payments increase income, taxpayer compliance, and delays, study finds. The county's web payment control cycle was shortened via e-payment. The e-payment control system had sufficient payment restrictions and security. E-banking, mobile payments, and Web payment control system obtained mean scores of 4.34, 4.28, and 4.38 on a 5-point Likert scale. The study's mean was 4.33, showing a considerable effect on income collection. Changes in independent factors explained revenue collection performance with a R square of 0.708. E-banking, mobile payments, and web payment control system were significantly associated with revenue collection performance, according to ANOVA with a p-value of 0.000b at 95% confidence level. The study found that e-banking improves county revenue collection. Mobile payments make tax compliance easier for taxpayers, which boost county government revenue, according to the study. The study indicated that web payment control has greatly changed the payment cycle. To accommodate more electronic financial transfers, the report advises the County Government of Nandi to invest in e-banking infrastructure. The County shall regularly update electronic services payment legislation and security measures to prevent fraud and protect financial transactions. The County Government of Nandi should accurately keep and quickly access digital records, including receipts and transaction data, to increase financial reporting and monitoring transparency and accountability.