Vol. 6, Issue 2, Part F (2024)

County governments are struggling to generate enough internal revenues to finance their expenditure and provide services to their residents. Nandi County implemented mobile payments to improve the collection of revenue. Nonetheless, Nandi County has continuously fallen short of achieving its revenue goals. This study determined the effect of mobile payments on the performance of revenue collection in the Nandi County Government. The study was grounded in the innovation diffusion theory and the revenue diversification theory; and adopted descriptive and correlational research designs. The target population consisted of 135 employees in the revenue collection section of the Finance department in the County Government of Nandi, all of whom were sampled in a census study. A pilot survey was conducted among revenue collection staff at the Uasin Gishu County Government. Questionnaires, interviews and observation schedules were used to collect both quantitative and qualitative data. Data analysis was conducted through descriptive and inferential statistics, including correlation and regression analysis. Quantitative data were analyzed descriptively using mean scores, percentages, and standard deviation, while inferential statistical analysis was undertaken using Pearson’s product moment correlation and regression models. Results showed that the e-banking system positively and significantly affected revenue collection performance. The study concludes that mobile payments have a significant effect on revenue collection for the county government by offering a more convenient and accessible method for taxpayers to fulfill their obligations. Mobile payments contribute to a more efficient and responsive revenue system, where funds are available for public services and development projects without unnecessary waiting periods. The study recommends that Nandi County should educate taxpayers on the benefits, provide easy access, and user support. Updating payment regulations and security features to prevent fraud is essential. Regular security protocol reviews and enhancements are necessary. The study recommends that emerging technologies for streamlined payment processes and real-time updates to financial records will improve efficiency and reduce delays and errors.