Strategic Outsourcing and Service Delivery at the Kenya Revenue Authority (KRA)
DOI:
https://doi.org/10.47941/jbsm.2710Keywords:
Strategic Outsourcing, Service Delivery Efficiency, ICT Outsourcing, Taxpayer SatisfactionAbstract
Purpose: The study’s main objective will be to analyze the impact of strategic outsourcing on KRA’s service delivery, with specific objectives focusing on ICT outsourcing, facilities management, customer support, marketing, and research and development. The study is grounded on the Resource-Based View (RBV) and Transaction Cost Economics (TCE) theories, which provide a framework for understanding how outsourcing enhances efficiency and reduces costs.
Methodology: A cross-sectional survey design will be employed, targeting KRA employees involved in outsourced functions, including ICT, facilities management, and customer support. A stratified random sampling technique will be used to select 306 respondents from a target population of 1,500 employees. Primary data will be collected using structured questionnaires, and both descriptive statistics (mean, standard deviation, percentages, and graphs) and inferential statistics (correlation and regression analysis) are used for data analysis.
Findings: The study findings indicate that ICT outsourcing, facilities management outsourcing, outsourced customer support services, outsourced marketing, and outsourced research and development do not significantly enhance the efficiency of KRA service delivery.
Unique Contribution to Theory, Policy and Practice: This study contributes to theory by expanding the understanding of strategic outsourcing in public sector institutions. It informs policy by providing insights into optimizing outsourcing practices for enhanced service delivery at KRA. In practice, it offers actionable recommendations for improving efficiency and accountability in outsourcing arrangements, benefiting both the public sector and service providers.
Downloads
References
Arvanitis, S., Loukis, E. N., & Diamantopoulou, V. (2022). Research and development outsourcing and service delivery efficiency in the public sector. Public Administration Review, 82(3), 467-483.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Barney, J. B., Ketchen, D. J., & Wright, M. (2021). The future of resource-based theory: Revitalization or decline? Journal of Management, 47(7), 1773-1795.
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386-405.
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2020). Multivariate data analysis (8th ed.). Cengage Learning.
Ikediashi, D. (2018). Comparative analysis of outsourcing and in-house facilities management services. Journal of Facilities Management, 16(4), 402-416.
Kipchumba, E. (2021). Strategic Outsourcing and Service Delivery in Public Institutions: A Case of Kenya Revenue Authority. Journal of Public Administration, 15(3), 45-60.
Mtsweni, J., Mtsweni, S., & Ramaphakela, M. (2021). The impact of IT outsourcing on organizational performance. Journal of Information Technology Management, 32(1), 56-72.
Mtsweni, P., Mokwena, S. N., & Moeti, M. N. (2021). The impact of outsourcing information technology services on business operations. South African Journal of Information Management, 23(1).
Mutegi, K. (2020). Public–private partnerships to drive final leg of vision 2030. Kenya Vision 2030. https://vision2030.go.ke/public-private-partnerships-to-drive-final-leg-of-vision-2030/
Mutongerwa, N. F., Juqu, Z. F., & Matebese, H. (2024). A paradigm shift in outsourcing functions to external service providers in the public sector: A liability for the state. American Journal of Supply Chain Management, 9(1), 13-32.
Mutua, J. (2025, January 20). KRA misses revenue target by Sh163bn in six months. Business Daily. https://www.businessdailyafrica.com/bd/economy/kra-misses-revenue-target-by-sh163bn-in-six-months-4895838
Mwangi, P., & Kariuki, S. (2023). The Impact of ICT Outsourcing on Operational Efficiency in Public Sector Institutions. African Journal of Business Management, 17(1), 89-102.
Ngugi, P., & Ochieng, D. (2022). Outsourcing Customer Support Services in Public Institutions: A Case of Kenya Revenue Authority. International Journal of Customer Relations, 8(2), 34-50.
Nyameboame, J., & Haddud, A. (2017). The effect of IT outsourcing on organizational performance. Journal of Global Operations and Strategic Sourcing, 10(3), 312-331.
Omondi, J., & Wambua, P. (2021). Facilities Management Outsourcing and Resource Optimization in Public Sector Institutions. Journal of Facilities Management, 19(3), 210-225.
Rajaeian, M. M., Cater-Steel, A., & Lane, M. (2017). The motivations and risks of IT insourcing and outsourcing decisions. International Journal of Information Management, 37(6), 620-632.
Williamson, O. E. (1975). Markets and hierarchies: Analysis and antitrust implications. The Free Press.
Williamson, O. E. (2020). Outsourcing, transaction costs, and firm boundaries. Strategic Management Journal, 41(12), 2108-2125
Yap, S., Lee, M., & Tan, P. (2021). Outsourcing marketing services and organizational performance: An empirical study. Marketing Science Review, 29(4), 211-228.
Zhu, X., Sun, Y., & Wang, L. (2021). The impact of research and development outsourcing on organizational performance. R&D Management Journal, 51(2), 157-176.
Zhu, W., Ng, S. C., Wang, Z., & Zhao, X. (2017). The role of outsourcing management process in improving the effectiveness of logistics outsourcing. International Journal of Production Economics, 188, 29-40.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Titus Sawe, Dr. Dennis Juma

This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.