The Effect of Upturn National Bank Billing System on Revenue Collection in the County Government of Nandi in Kenya

The Constitution of Kenya 2010, led to the devolution of various public services to county governments, including the responsibility of revenue collection to fund their operations and functions. When the optimal collection of necessary revenues by county governments is not achieved, the public may suffer adverse consequences, experiencing poor service delivery. This study examined the effect of Upturn National Bank billing system on revenue collection in the county government of Nandi and was guided by the revenue diversification theory and the resource-based view theory. The study employed a descriptive research design. The target population of the study was 4,017 employees in the twelve departments of the county government of Nandi. This study used the Yamane (1973) formula to get the sample size and stratified random sampling to select respondents. Data was collected through questionnaires. The statistical package for social sciences was used to analyse the data. Inferential statistics was used to compare each independent variable with the dependent variable. The relationship between variables was evaluated using Pearson's correlation coefficient. Furthermore, regression analysis was conducted to analyze the combined effect of the variables. The study variables were tested at a significance level of 5%. Tables were used to present findings. Results revealed that the Nandi county government’s electronic billing system had a positive and significant impact on revenue collection (β =0.184, p =0.000). The use of online platforms streamlined billing processes. This study recommended that the county’s billing should be done through online platforms. The county’s internal audit department should ensure that there are adequate electronic checks in bank accounts. Findings of this study are important to the county governments as they would form a basis against which robust billing policies would be instituted to enhance revenue collection. Additionally, this study would add to theory on e-billing and revenue collection for devolved systems of government.