What question did this study set out to answer?

This study aims to investigate the effect of ICT strategic capability factors on the performance of digital tax administration in Kenya.

June 17, 2026Open Access

Influence of Online Tax Compliance ICT Strategic Capability Factors On Digital Tax Administration Strategy Performance in Kenya

Key Points

This study aims to investigate the effect of ICT strategic capability factors on the performance of digital tax administration in Kenya.
Descriptive research design employed with a sample of 306 KRA staff from a population of 1,700.
Data collected through semi-structured questionnaires and analyzed using SPSS Version 21.
Methods included descriptive statistics, factor analysis, ANOVA, and regression analysis.
A significant positive relationship was found between ICT strategic capability and performance (β = 0.326, p < 0.001).
The model explained 58.0% of the variance in digital tax administration performance (R² = 0.580).
Strong implementation of ICT capabilities reported, with positive perceptions of efficiency, equity, simplicity, and effectiveness.

Abstract

Purpose of the Study: The purpose of this study was to determine the influence of online tax compliance ICT strategic capability factors on digital tax administration strategy performance in Kenya, focusing on the Kenya Revenue Authority (KRA). The study examined how e-filing, e-payment systems, user-friendly platforms, third-party information monitoring, and human-factor management contribute to improved digital tax administration outcomes. Methodology: The study adopted a descriptive research design based on a positivist philosophy. A sample of 306 KRA staff was selected from a target population of 1,700 employees at Times Tower Headquarters. Data were collected using semi-structured questionnaires and analysed using SPSS Version 21 through descriptive statistics, factor analysis, ANOVA, and regression analysis. Findings: The findings revealed that online tax compliance ICT strategic capability factors significantly and positively influence digital tax administration strategy performance in Kenya. The study established that e-filing and e-payment facilitation, user-friendly compliance systems, third-party information monitoring, and strategic human-factor management contribute to enhanced digital tax administration outcomes. Regression results showed a significant relationship between ICT strategic capability and performance (β = 0.326, p < 0.001), with the model explaining 58.0% of the variation in digital tax administration strategy performance (R² = 0.580). Respondents reported strong implementation of ICT capabilities and positive perceptions regarding efficiency, equity, simplicity, flexibility, and effectiveness. Conclusion: The study concludes that ICT strategic capabilities are essential drivers of digital tax administration strategy performance at KRA. Sustained investment in digital infrastructure, taxpayer support systems, and human-factor management is necessary to strengthen compliance outcomes.

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