Silent Struggles of Revenue Collection in Busia County

Feler Orido and Dr Fred Gichana Atandi
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Feler Orido: Department of Economics, Finance and Accounting, Kibabii University
Dr Fred Gichana Atandi: Kibabii University

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 3, 902-920

Abstract: Revenue collection is crucial for financing county development, delivering public services, and promoting sustainable growth. In Busia County, however, this process encounters numerous challenges, including systemic inefficiencies, corruption, and a heavy reliance on cross-border trade. This paper explores the subtle yet widespread issues that obstruct effective revenue collection in Busia. It investigates the underlying causes—such as inadequate infrastructure, political indifference, revenue leakages, and a lack of stakeholder awareness—and their impact on economic performance. The study is grounded in public choice theory, institutional theory, and stakeholder theory. A desktop review research design was employed, involving 25 revenue officers from various departments, 20 traders from both formal and informal sectors, 10 political leaders and policymakers, and 15 residents from diverse socio-economic backgrounds, all selected through purposive sampling methods due to their daily engagement with financial matters. Secondary data were utilized. Interview and focus group discussion data were transcribed and thematically analyzed using a manual coding process to uncover recurring patterns and challenges. Observational data were categorized to assess operational inefficiencies and compliance gaps. Financial data were analyzed with statistical tools to evaluate revenue trends, shortfalls, and correlations among different variables. The automated revenue system decreased inconsistencies by 15%, yet issues such as unreliable internet and insufficient training continued to be a problem. Informal trade made up 40% of untaxed transactions, and 65% of traders indicated that they felt politically encouraged to evade taxes. Public trust was still lacking, with 58% expressing dissatisfaction with how tax funds were allocated. Furthermore, 43% of revenue officers encountered challenges in tax collection due to inadequate infrastructure. The study revealed that poor road networks, insufficient office facilities, and unreliable technological systems are significant obstacles. These infrastructural shortcomings impede revenue officers’ ability to reach remote areas and effectively implement modern collection methods. Suggested solutions include aligning county laws with national policies, enhancing automation of revenue streams, and investing in staff capacity building. The study emphasizes the importance of exploring new revenue sources, including eco-tourism, improved management of border markets, and tapping into informal sectors like bodaboda operations. It also suggests decentralizing revenue collection to local municipalities and building public trust through transparent service delivery. By tackling these systemic issues, Busia County can enhance its revenue capabilities, lessen its reliance on national funding, and promote sustainable economic development. The recommended reforms aim to establish a transparent, fair, and efficient revenue collection system that caters to the needs of its varied population. This paper outlines a detailed plan for policymakers, prioritizing inclusivity, innovation, and accountability to ensure a lasting fiscal and social impact.

Date: 2025
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