THESIS TITLE: Risk assessment practices and revenue collection in county government of Bungoma

STUDENT’S NAME: Sirengo S. Edmond

SUPERVISORS

1. Dr. Abraham Malenya

2. Dr. Edwin Jairus Simiyu

ABSTRACT

This research thesis establishes the risk assessment practices adopted by the county government of Bungoma in improving revenue collection. The main objective of the study was to establish the relationship between risk assessment practices on revenue collection, while the specific objectives were to determine the effects of risk identification on revenue collection, to establish the risk analysis on revenue collection and lastly to analyze the risk mitigation on revenue collection. Three theories were applicable to this study and they are Risk Management Theory, Agency Theory, and Resource-Based Theory. Data collection involved a descriptive research design, targeting employees from the revenue department of the county government of Bungoma, as well as division of economic planning personnel. Given the specific population of interest, a Census Methodology was employed, with samples gathered through simple random sampling. Self-administered questionnaires were distributed to participants, with surveys physically delivered to respondents’ workplaces and later retrieved by the researcher for data analysis. The study findings were presented using tables showing frequencies, percentages, means, and standard deviations, providing a comprehensive overview of the collected data. The study’s first research hypothesis, H₀1, proposed that risk identification had no significant effect on revenue collection. However, the analysis revealed a significant and moderately strong positive linear correlation between risk identification and revenue collection. The relationship was characterized as linear, positive, relatively weak, and significant, with a significance value of p = 0.000<0.05. This indicates that the model was statistically significant in predicting how creativeness in risk identification affects revenue collection. Similarly, the second null hypothesis, H₀2, suggested that risk analysis has no significant effect on revenue collection. However, the findings demonstrated a linear, positive, relatively weak, and significant relationship between risk analysis and revenue collection, with a correlation coefficient (R) of 0.383 and a significance value of p = 0.000<0.05. This indicates that the model is statistically significant in predicting how risk analysis affects revenue collection. Furthermore, the third null hypothesis, H03, proposed that risk mitigation has no significant effect on revenue collection. However, the analysis showed that risk mitigation significantly affects revenue collection, with a significance value of p = 0.000<0.05. This suggests that the model is statistically significant in predicting how risk mitigation affects revenue collection. Based on these findings, the study recommends that the county government should support a risk identification, risk analysis, and risk mitigation management program among county governments to enhance business continuity. Additionally, developing a crisis management strategy to enhance service delivery is advised.