| dc.description.abstract | The devolved system of government introduced in Kenya in 2013 ushered in fiscal
decentralization, granting counties the autonomy to collect and manage their own-source
revenues (OSR). Embedded in the Constitution and supported by legislations, OSR was
further guided by a National OSR Policy formulated by the Government of Kenya through
the Commission for Revenue Allocation (CRA). This policy aimed to streamline county
OSR processes, becoming crucial for sustained service provision by county governments,
particularly as an alternative financing source when the equitable share disbursement faces
challenges. Despite these initiatives, the anticipated benefits of fiscal decentralization have
not been uniformly realized. A prime example is Busia County, where a mere 20 percent of
the projected OSR was in collected in 2022, significantly below the national average. This
declining trend over five years triggered the need for an in-depth examination of the factors
impacting OSR implementation, focusing on the Cess Act – a legislative tool governing the
collection and administration of agricultural product revenues. Given Busia County's
agrarian economy, this study sought to assess OSR Policy implementation within the
framework of the Cess Act. The study pursued three specific objectives: firstly, to scrutinize
the legal and policy frameworks shaping the enactment of the Cess Act for agricultural
produce collection within Busia County Government; secondly, to dissect the obstacles
impeding effective administration and collection under the Cess Act in the county; and
lastly, to evaluate the efficacy of the collection and administration strategies outlined by the
Cess Act. Through a mixed-method approach, this research engaged diverse stakeholders
engaged in agricultural revenue processes, spanning taxpayers to tax officers. Stratified into
three tiers, these actors formed the analytical unit, facilitating a comprehensive
understanding of challenges and dynamics. Data collection encompassed document analysis
of pertinent county and national reports, quantitative data from semi-structured
questionnaires, and qualitative insights from focus group discussions and key informant
interviews. Study sample population encompassed 461 based on Fischer et al. 1998 adjusted
20% upwards to cater for unforeseen limitations to participation. The findings offered
valuable insights into Busia County's OSR landscape. They uncovered legal and policy
gaps, and operational challenges that hindered effective Cess collection and administration.
Beyond the empirical results, the study's theoretical underpinning of fiscal decentralization
shed light on the intricate interplay between policy intent and on-ground hurdles. In
conclusion, this study's inquiry into OSR Policy implementation through the Cess Act
within Busia County illuminates the intricacies of revenue collection and administration. It
bridges the gap between policy aspirations and implementation realities, enriching the
understanding of fiscal decentralization dynamics in the Kenyan context. The study
underscores the urgency for coherent legal frameworks, efficient strategies, and meaningful
stakeholder engagement to advance sustainable county development. | en_US |
