Influence of Online Tax Compliance ICT Strategic Capability Factors On Digital Tax Administration Strategy Performance in Kenya

Purpose of the Study: The purpose of this study was to determine the influence of online tax compliance ICT strategic capability factors on digital tax administration strategy performance in Kenya, focusing on the Kenya Revenue Authority (KRA). The study examined how e-filing, e-payment systems, user-friendly platforms, third-party information monitoring, and human-factor management contribute to improved digital tax administration outcomes. Methodology: The study adopted a descriptive research design based on a positivist philosophy. A sample of 306 KRA staff was selected from a target population of 1,700 employees at Times Tower Headquarters. Data were collected using semi-structured questionnaires and analysed using SPSS Version 21 through descriptive statistics, factor analysis, ANOVA, and regression analysis. Findings: The findings revealed that online tax compliance ICT strategic capability factors significantly and positively influence digital tax administration strategy performance in Kenya. The study established that e-filing and e-payment facilitation, user-friendly compliance systems, third-party information monitoring, and strategic human-factor management contribute to enhanced digital tax administration outcomes. Regression results showed a significant relationship between ICT strategic capability and performance (β = 0.326, p < 0.001), with the model explaining 58.0% of the variation in digital tax administration strategy performance (R² = 0.580). Respondents reported strong implementation of ICT capabilities and positive perceptions regarding efficiency, equity, simplicity, flexibility, and effectiveness. Conclusion: The study concludes that ICT strategic capabilities are essential drivers of digital tax administration strategy performance at KRA. Sustained investment in digital infrastructure, taxpayer support systems, and human-factor management is necessary to strengthen compliance outcomes.