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Research Article

Influence of Tax Diversification on Own Source Revenue Performance in Lake Region Economic Block Counties, Kenya

Authors

  • Kisaka Juma Cleophas Masinde Muliro University of Science and Technology, Kakamega, Kenya https://orcid.org/0009-0002-3045-6909

    cleophaskisaka@yahoo.com

  • Wycliffe Muli Maingi Masinde Muliro University of Science and Technology, Kakamega, Kenya
  • Fredrick Kiongera Masinde Muliro University of Science and Technology, Kakamega, Kenya

Abstract

The 2010 Constitution, the 2012 Public Finance Management Act, and the 2012 County Government Act all talk about Own Source Revenue (OSR). OSR performance offers county governments more power over their own revenue, which helps them manage public finance better. On the other hand, counties in the Lake Region Economic Bloc (LREB) have problems collecting taxes since they don't have enough distinct kinds of taxes. The study used Gross County Product (GCP) as a moderating variable to look at how tax diversification affects OSR performance. The study used Modern Portfolio Theory as its basis. A descriptive survey study approach was employed to get in touch with 170 County authorities in the 14 LREB counties. We used structured surveys to get information. There was a pilot study in Uasin Gishu County. SPSS version 24 for statistical analysis was used. Pearson's correlation coefficient was used to establish relationships between variables and regression analysis to evaluate how they affected OSR performance. Cronbach's alpha was used to check how reliable it was. The results showed that tax diversification has a large effect on OSR performance (β = 0.211, ρ < 0.05). Counties should look into and use various ways to collect money besides traditional taxes. These could include service fees, licensing, and new activities that bring in money. The study's purpose is to assist county lawmakers develop and employ new ways to raise revenue, such as service fees and licensing.

Keywords:

Economic Bloc Gross County Product Own Source Revenue Performance Tax Diversification

Article information

Journal

Journal of Arts, Humanities and Social Science

Volume (Issue)

2(3), (2025)

Pages

1-9

Published

03-09-2025

How to Cite

Cleophas, K. J., Maingi, W. M., & Kiongera, F. (2025). Influence of Tax Diversification on Own Source Revenue Performance in Lake Region Economic Block Counties, Kenya. Journal of Arts, Humanities and Social Science, 2(3), 1-9. https://doi.org/10.69739/jahss.v2i3.730

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