European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.10, No.11, 2018 118 Effects of Automation of Revenue Collection on the Performance of County Government: A Case Study of Trans Nzoia, County Government. Kenya Benard Lidaywa Madegwa * Elizabeth Nambuswa Makokha Prof. Gregory Namusonge School of Human Resource Development, Department of Entrepreneurship and Procurement.Jomo Kenyatta University of Agriculture and Technology, P.O. Box 62000 - 00200, Nairobi Kenya Abstract There is an increasing need by the government to collect much revenue by way of taxes to face the increasing financial expenditures budgeted by the country. The study aimed at assessing the impact of automation of revenue collection process on organizational performance, a case study of Trans Nzoia County. The objective of the study were to determine the effect of communication and the performance of Trans Nzioa county government. The design of this research was a descriptive survey research. The population for this study composed of 7 top level managers, 15 Accountant and 40 Revenue collectors. Stratified proportionate random sampling technique was used to select the sample of 62 respondents. The study used a semi structured self-administered questionnaire to collect data from the respondents. Quantitative data was analyzed by descriptive analysis using SPSS and presented in form of frequency tables. Content analysis was used for the qualitative data and then presented in prose. The study also conducted a regression analysis to establish the relationship between variables. The study concluded that online process of automation of revenue collection processes influence performance in Trans Nzioa county government office to a great extent.The study further concludes that automation of revenue collection processes offers great deal of effective management; The study concludes that online payment process of automation of revenue collection processes influence performance in Trans Nzioa county government office to a great extent. Further, the study concludes that time saving, compliance with government rules, controlled cross-border flow of goods, revenue payment channels and that collection costs influence performance in Trans Nzioa county government office to a great extent. The study also concludes that online response process of automation of revenue collection processes influence performance in Trans Nzioa county government office to a great extent. As well, the study established that risk management, tax data entry and that feedback influence performance in their office. From the findings, the study recommends that automation of the revenue management process should be improved to enhance efficiency in the revenue collection process. The county should maximize employee’s multi- dimensional abilities for better performance and hence improve revenue collection. The study further established that reliable online communication influences performance in the Trans Nzioa county government office. As a result, this study recommends that the administration at the County offices invest heavily in communication especially online communication amongst members. This will help to attain maximum possible benefits of online receipting process. The study therefore recommends that the County should make a full migration to online payment process of all large transactions. Keywords: Communication, Automation of Revenue Collection, Performance 1.0 Introduction Technology adoption is key in improving the efficiency and effectiveness in revenue mobilization. No doubt, the traditional kinds of paper forms always will be an essential part of the tax administration system (UNCTAD, 2008). Through technology adoption, a tax collection agency will be able to meet their revenue collection targets, as there will be less tax avoidance and evasions. Technology in the tax framework falls under the Public Administration part and its target is to enhance the productivity and viability both at national and local level. Electronic revenue collection in developing countries has gained increasing prominence in the policy debate recently. For instance Nisar (2013) argued that recent trends in public taxation stress the need of developing a system of tax assessment and collection that involves internet services. Several factors explain this, including the potential benefits of taxation for state building; independence from foreign aid; the fiscal effects of trade liberalization; the financial and debt crisis in the “West”; and the acute financial needs of developing countries. Governments in developing countries face great challenges in collecting tax revenues, which result in a gap between what they could collect and what they actually collect. Automation of revenue collection system involves investing in modern technologies for example: ICT in order to upgrade the revenue system to achieve integration and information sharing so as to enhance efficiency and effectiveness of the system. All Sectors of the County should put in place an effective and efficient revenue collection system in monitoring framework that ensures adequate supervision of the budgeted programs and project activities to enhance accountability and absorption of resources (Amin, 2013). Automation of revenue collection systems and structures is instrumental in improving and simplifying administration of taxation through utilizing modern technologies for example ICT. In view of the above, Panday