CUSTOMER SATISFACTION SURVEY 2017/2018 REPORT
Prepared By: SBO Research Ltd Kindaruma Road off Ring Road P.O Box 10567-00400 Nairobi Tel: 020-2145668/2101916/7 Email: [email protected]
For:
ISO 9001:2015 Certified
DECEMBER,2017
Contents 1. CHAPTER ONE: BACKGROUND ...... 1
1.1 Introduction ...... 1
1.2 The Organizational Governance and Management ...... 1
1.3 Current Situation at KRA ...... 1
1.4 Research objectives ...... 3
1.5 Scope of Work ...... 3
2. CHAPTER TWO: LITERATURE REVIEW ...... 4
2.0 Introduction ...... 4
2.1 Overview of the literature ...... 4
2.2 Customer Satisfaction Theory ...... 4
2.3 Customer Satisfaction Models ...... 5
2.4 Comparative Analysis with Competition ...... 9
3. CHAPTER THREE: RESEARCH METHODOLOGY ...... 11
3.0 Introduction ...... 11
3.1 Research Approach ...... 11
3.2 Target Population ...... 12
3.3 Sampling Design ...... 12
3.5 Data Analysis ...... 14
4. CHAPTER FOUR: DATA ANALYSIS AND RESEARCH FINDINGS ...... 15
4.0 Introduction ...... 15
4.1. Response Rate ...... 15
4.2 KRA Customer Service Charter ...... 20
4.3 KRA Reforms on Service Delivery ...... 26
4.4. Complaint Handling & Resolution ...... 31 ______ii Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.5 KRA Contact Centre ...... 38
4.6 KRA Website ...... 39
4.7 KRA services at Huduma Centres ...... 41
4.8 Customer Satisfaction on Key Touch Points ...... 43
4.9 Likes and Dislikes of KRA ...... 48
4.10 Evaluating KRA Systems ...... 49
4.11 Quality of Communication ...... 51
4.12 Supplier Satisfaction with Procurement of Goods and Services ...... 52
4.13 Overall Customer Satisfaction Index ...... 54
4.14 Summary of Regional Ratings on Customer Satisfaction ...... 56
4.15 Net Promoter Score (NPS) ...... 57
4.16 Brand Personality ...... 58
5. CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS ...... 59
REFERENCES ...... 65
QUESTIONNAIRE ...... 67
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List of Tables Table 2. 1 Kenya Power- (2016-2021) ...... 9 Table 2.2: National Hospital Insurance Fund (2014-2018) ...... 10 Table 3. 3 Selection of customer sample size ...... 12 Table3. 4: Adjusted sample breakdown ...... 13 Table 3. 5: Distribution of individual taxpayers ...... 13 Table 4.6: Achieved sample ...... 15 Table 4.7: Interaction with KRA ...... 17 Table 4.8: Reasons for interaction ...... 19 Table 4. 9: Comparative Analysis - awareness of customer service charter ...... 21 Table 4. 10: Customer service charter awareness sources ...... 21 Table 4. 11: Comparative Analysis – Customer service charter awareness sources ...... 22 Table 4. 12: Customer service charter awareness sources -individual taxpayers ...... 22 Table 4. 13: Comparative Analysis - effectiveness of the customer service charter ...... 23 Table 4. 14: Living the core values ...... 25 Table 4. 15: Specific reforms - Levels of awareness ...... 27 Table 4. 16: Impact of iTax systems ...... 28 Table 4.17: Impact of Huduma centres ...... 28 Table 4.18: Impact of processing of VAT ...... 29 Table 4.19: Impact of mobile payment systems ...... 29 Table 4. 20: Impact of established call centre ...... 30 Table 4. 21: Impact of website upgrade ...... 30 Table 4. 22: Comparative Analysis - complaints incidence ...... 31 Table 4. 23: Nature of complaints ...... 32 Table 4.24: Comparative Analysis - complaints reporting ...... 33 Table 4. 25: Taxpayer Complaints channels ...... 34 Table 4. 26: Comparative Analysis - speed of complaint resolution ...... 35 Table4. 27: Comparative Analysis - satisfaction with complaint resolution ...... 36 Table 4. 28: Effectiveness and satisfaction of the contact centre ...... 38 Table 4.29: Frequency of visit ...... 40 Table 4.30: Reasons for website visit ...... 40 Table 4.31: Frequency of visit ...... 41
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Table 4.32: Reasons for visit to Huduma centre ...... 42 Table 4.33: Satisfaction with KRA staff ...... 43 Table 4.34: Satisfaction with support services ...... 44 Table 4.35: Employees Integrity and fairness ...... 44 Table4. 36: Comparative Analysis - employee’s integrity and fairness ...... 45 Table 4.37: Taxpayer education and information ...... 46 Table 4. 38: Comparative Analysis - Taxpayer Education ...... 46 Table 4.39: KRA Performance on functional and operational attributes ...... 47 Table 4.40: Likes/Dislikes about KRA ...... 48 Table 4.41: Customer satisfaction with tax processes ...... 49 Table 4.42: Customer satisfaction with KRA systems ...... 50 Table 4.43: Quality of communication ...... 51 Table 4.44: Supplier satisfaction with procurement of goods and services ...... 52 Table 4. 45: Comparative Analysis - satisfaction with procurement of goods and services ...... 53 Table 4.46: Overall Customer satisfaction Index ...... 54 Table 4.47: Comparative satisfaction scores – 2013/201 – 2016/2017 ...... 55 Table 4.48: Regional ratings ...... 56 Table 4.49: NPS summary of the various stakeholders is presented as follows ...... 57 Table 4.50: KRA Brand personification ...... 58 Table 5.51: Comparative satisfaction scores – 2013/201 – 2016/2017 ...... 59
List of figures Figure 4.1: Individual Taxpayers by age and gender ...... 16 Figure 4.2: Individual Taxpayers by regions ...... 16 Figure 4.3: Customers across different segments ...... 17 Figure 4.4: Mode of contact used ...... 18 Figure 4.5: Provision of feedback ...... 19 Figure 4.6: Customer service charter awareness ...... 20 Figure 4. 7: Individual taxpayers’ customer service charter awareness- by regions ...... 20 Figure 4. 8: Effectiveness of the customer service charter ...... 23 Figure 4. 9: Awareness of KRA reforms ...... 26 Figure 4. 10: Awareness of KRA reforms -Individual Taxpayers ...... 27
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Figure 4 11: Complaints Incidence ...... 31 Figure 4. 12: Reporting of complaints ...... 32 Figure 4.13: Deterrents for complaints registration ...... 33 Figure 4.14: Speed of complaint resolution ...... 35 Figure 4. 15: Satisfaction with complaint resolution ...... 36 Figure 4. 16: Awareness of KRAs contact centre number ...... 38 Figure 4. 17: Awareness of KRAs website ...... 39 Figure 4.18: Awareness of Huduma centre ...... 41
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ABRREVIATIONS BOD – Board of Directors DPC – Document Processing Centre ECTS - Electronic Cargo Tracking System FGD – Focus Group Discussion GDP – Gross Domestic Product IDI – In Depth Interviews ITMS - Integrated Tax Management System KRA – Kenya Revenue Authority LTO – Large Taxpayer Office MST – Medium Small Taxpayer MTO – Medium Taxpayer Office NPS- Net Promoter Score SPSS - Statistical Package for Social Sciences TOR – Terms of Reference VMS - Vehicle Management System SMEs- Small & Medium Sized Enterprises SMS –Short Message Services
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EXECUTIVE SUMMARY Introduction Best practice and the Tax administration Diagnostic Assessment Tool (TADAT) requires customer satisfaction survey to be carried out at least once in every two years by an independent consultant and the findings implemented in the subsequent years. In this regard The Authority commissioned SBO Research Ltd to conduct customer satisfaction survey for the year 2017/2018. The main objective of the survey was to assess taxpayers’ perception of the level and quality of service delivery and whether their service expectations were being met by KRA.
The survey used both qualitative and quantitative data obtained from secondary and primary data sources through literature review and questionnaires respectively. The primary data was collected from Individual Taxpayers, Large Taxpayers, Medium Taxpayers, SMEs, Supplies, Associations and Clearing Agents/Importers & Importers. The proposed sample was 2401. However, the survey achieved a sample of 2470 as follows: Individual taxpayers (1800), LTOs (180), MTOs (100), SMEs (200), Suppliers (100), Associations (30) and finally Clearing Agents/Importers & Importers (60). The achieved sample for individual taxpayers was as follows: Nairobi (586), Central (287), Northern (292), South Rift (146), North Rift (163), Southern (99) and Western (286).
The information and data were analyzed using Statistical Package for Social Scientists (SPSS). Indices were used to measure customer satisfaction level on a scale of 1-5 (1 to 5) with one being dissatisfied and 5 being very satisfied.
Summary of results Based on the findings, the overall satisfaction index for KRA for the financial year ending June 2017 stood at 71.9% against a target of 80%. This was however an improvement compared to 2014 where the index was 65%.The improvement was realized from shift in satisfaction on adherence to core values, Customer perception on staff, Support given by staff to taxpayers and complaint handling. However, there was a decline on customers’ satisfaction with the level of integrity and fairness exhibited by staff. On customer service charter awareness, there was a drop across all customer segments from 64% in 2013 to 49% in 2017.
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LTOs: The overall score for Large Taxpayers was 69.7% which was similar to the score achieved in 2013. On service charter awareness, LTOs recorded some improvements from 65% in 2013 to 73% in 2017. Similarly, on reform awareness, 80% of LTOs indicated they are aware compared to 2013 where the awareness level was 60%. On level of professionalism, there was slightly improvement on KRA ratings from 70% in 2013 to72% in 2017. On integrity and fairness, KRA rating dropped from 64% in 2013 to 55% in 2017.
MTOS: The overall satisfaction score for MTOs was 70.8%. In regard to reforms awareness, there was some improvements in terms of customer’s awareness on reforms from 54% in 2013 to 60% in 2017. On the same note, there was also improvement on levels of perception in regard to staff professionalism from 69% in 2013 to 73% in 2017. In regard to complaint handling, KRA recorded significant improvement from 36% in 2013 to 48% in 2017. However, MTOs scored KRA at 53% on integrity and fairness in 2017 which was a significant drop from a rating of 62% in 2013.
SMES: The overall satisfaction score for SMEs stood at 73.9% which was an improvement from 68% in 2013. A number of SMEs (76.8%) were happy with KRA systems especially the Simba System/ iCMS (86.7%) Other areas that were rated highly by SMEs included complaints handling (80.4%) and KRA core values (77.2%).However the report indicated a need to improve on integrity and fairness which was ranked lowest at 63.3%.
Clearing and Forwarding Agents: The overall score for clearing and forwarding agents stood at 75.8% which is an improvement of 9.8 %( from 66% in 2013). On complaint handling, KRA was rated at 100% in 2017 on satisfaction which is a significant shift from 42% in 2013. On reforms awareness, there was however substantial drop from 82% in 2013 to 68% in 2017.
Suppliers: Overall satisfaction index for suppliers stands at 76.4% a decline of 7.6% (from 84% in 2013 to 76.4% in 2017). Dissatisfaction areas include integrity and fairness, lack of adequate time for submission of responses to bid and bidders not being informed as to why their bids were not successful. However, KRA was perceived to follow guidelines set by Public Procurement and Oversight Authority (PPOA). Further, the prequalification process was said to be fair and transparent.
Associations: The overall satisfaction score with KRA by Associations was 71.9%. KRA was rated highly on effectiveness of the service charter (81%) and complaint handling (81.8%). However, customers’ were dissatisfied with communication at KRA.
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Conclusions The KRA brand is considered to be mature (systems and structures are in place) and stringent in sticking to its structures. The brand is largely perceived to embrace modernity. On likes, KRA was perceived to have faster services especially with the online system (41%), however, some customers complained about the long queues and penalties charged in case of default or delays in filling returns.
The overall NPS was positive (29%), an indicator that customers are satisfied with KRA services. More importantly, a positive NPS signifies that the number of taxpayers likely to pass a positive word of mouth to other taxpayers/citizens is bigger than those who would pass a negative message.
On reforms awareness, 60% indicated to be aware of some reforms, which is low given that the reforms are meant to improve services.
Recommendations First, Successful customer service revolves around product and service knowledge. KRA should therefore invest in building knowledge about their products with customers. It is also important for KRA to keep customers updated on initiatives that it is undertaking in a bid to improve customer experience as it is only through understanding the efforts being put, customers can reciprocate and appreciate. Further, KRA should ensure all customers are aware of its customer service charter as the helps in managing their expectations with KRA.
With technology revolution among customers where physical interaction is increasingly becoming minimal, KRA can take advantage of the new communications channels in the market for example use of social media, web chat and emails to reach out to their customers in a bid to increase customer satisfaction. Also through use of modern technology, KRA can frequently monitor customers’ satisfaction real time after through SMS after visiting various touch point. In order to minimize dissatisfaction with complaints handling KRA should continue strengthening the mechanisms existing in order to provide complaints resolutions on top of empowering staff to provide solutions at the appropriate level/touch points.
There is need to recognize and reward values-centric behaviors. This will give employees an opportunity to nominate co-workers who successfully live the KRA values. KRA should also re-enforce core values in all communications, including all meetings and in brochures and newsletters and during
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trainings and orientations. In order to generate positive word of mouth that would influence change in any negative perceptions about KRA, the authority should engage in frequent feedback mechanism with the customers.
A customer oriented organization benefits greatly from a positive word of mouth as consumers are always optimistic about its innovations and quality. This makes it easy to reach out to customers with minimal efforts. KRA should therefore continue building on the NPS for impactful and less costly campaigns.
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1. CHAPTER ONE: BACKGROUND
1.1 Introduction The Kenya Revenue Authority was established by an Act of Parliament (Cap 469) on 1st July 1995 as a central body for the assessment and collection of revenue, for the administration and enforcement of the laws relating to revenue and to provide for connected purposes. In particular, the functions of the Authority are: - . To assess, collect and account for all revenues in accordance with specific laws set out in the first part of the First Schedule and the revenue provisions of the second part of the First Schedule, . To advise on matters relating to the administration of, and collection of revenue under the written laws or the specified provisions of the written laws. . To perform such other functions in relation to revenue as the Minister (for Finance) may direct.
1.2 The Organizational Governance and Management The Board of Directors (BoD) is the governing Body of KRA as set out in the KRA Act. It has two ex- officio members from the Government (representative of the Cabinet Secretary to the National Treasury and the Attorney General), the Commissioner General and six other members from private sector. The BoD is responsible for the review and approval of policies and monitoring the functions of KRA.
The day to day management of the Authority is the responsibility of the Commissioner General, assisted by Commissioners in charge of Customs and Border Control, Domestic Taxes, Investigations and Enforcement, Corporate Support Services, and Strategy, Innovation and Risk Management department and Internal Audit Department.
1.3 Current Situation at KRA Over the period of 1995/1996 to 2016/17, tax revenue collection rose from Kshs. 122 billion in 1995/96 to 1.365 Trillion. This strong revenue performance has been matched by improvements in customer service, primarily driven by initiatives in automation, integrity and enhancing professionalism in service delivery. During the sixth corporate plan period, KRA seeks to achieve revenue mobilization targets through automation and modernization in a way that enhances customer services.
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From the past survey (2013/2014) the following were some of service delivery challenges which included Existence of bureaucratic processes that prolongs service delivery turn-around times, Lack of integration of customer information from disparate business systems and processes hindering first contact resolution, recurrent system downtimes leading to discontinuity of service and existence of disjointed and disparate service touch points, leading to inconsistency of service delivery.
Further, the study also highlighted communication and complaints handling challenges. These were said to lead to limited awareness on existing legislative-driven processes and role of the Exchequer on disbursement of tax refunds. Other challenge included lack of a forward looking strategy for stakeholder engagement when rolling out tax administration and trade reforms and a proactive go-to- market approach to enhance uptake of services across existing and new service touch points.
According to The KRA 6th corporate plan (2015/2016- 2017/2018, Revenue authorities are expected to be responsive to taxpayers while simultaneously being consistent in the application of tax laws. Responsiveness requires accessibility, provision of accurate and timely information, accurate and timely treatment of requests and appeals. This requires the creation of customer oriented systems as opposed to systems targeted at the needs of tax administrations. It also requires emphasizing single point of contact, self-service and electronic services especially focused on filing, payment and electronic access to account balances.
Despite its considerable achievements in minimizing customer compliance costs over the time, there is need for KRA to continue enhancing its service levels. Over the past years, various surveys and reports have exposed the weaknesses in service delivery. KRA is cognizant of the fact that the first step to improving customer compliance is by building trust through facilitation. In the Sixth Corporate Plan KRA aims to raise customer satisfaction level to 80% from 65% in 2013/14. This requires a significant improvement in employee satisfaction.
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1.4 Research objectives The main objective of the survey was to assess the taxpayers’ perception of the level and quality of service delivery and whether their service expectations were being met by KRA.
Specific Objectives i. Evaluate the customers’ perception towards KRA services ii. Find out the extent to which KRA is adhering to Customer Service Standards and Taxpayer’s Charter iii. Ascertain KRA key areas of strength and weaknesses in a bid to identify gaps and opportunities in service delivery iv. Identify the sources and frequency of taxpayer complaints in regard to service delivery v. Determine taxpayers’ awareness of KRA services and sources of awareness vi. Establish the effectiveness of taxpayer education programs and other reforms on service delivery vii. Determine overall KRA performance on key customer satisfaction measures - Customer Satisfaction Index, Net Promoter Score, and Loyalty Score viii. Provide comparative analysis of the Authority’s service delivery ix. Identify and propose service improvement measures
1.5 Scope of Work To achieve the objectives of this survey, the scope of work encompassed the following tasks: Design of appropriate tools to gather data Developing sampling frame and the sample size base on the stakeholder list provided Collect the desired data as agreed with KRA Analyze the data and provide the reports as indicated in the deliverables Establish the customer satisfaction level and compute the change in the levels of satisfaction
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2. CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction Customer satisfaction provides a leading indicator of consumer perceptions towards institutions and products as well as loyalty. Customer satisfaction also provides a platform for customers to share their opinion and suggestions on areas that require change or improvement thus enhancing positive experience at every customer touch point.
2.1 Overview of the literature This section highlights some literature on customer satisfaction in Kenya, policies and strategies employed by the government in addressing the same. It also seeks to uncover some insights from models and theories in empirical data and their relevance to the survey. The Key indices and measurements are also defined in this section.
2.2 Customer Satisfaction Theory Expectancy-Disconfirmation Paradigm Theory Drawing on the shortcomings of the early theories of consumer satisfaction, Oliver (1977, 1980) proposed the Expectancy-Disconfirmation Paradigm (EDP) as the most promising theoretical framework for the assessment of customer satisfaction. The theory implies that consumers buy goods/ services with pre-purchase expectations about the anticipated performance. The expectation level hence becomes a standard against which the product/service is evaluated. That is, once the product or service has been used, outcomes are compared against expectations. Where the outcome matches the expectation confirmation occurs. Disconfirmation occurs where there is a difference between expectations and outcomes. A customer is either satisfied or dissatisfied as a result of positive or negative difference between expectations and perceptions. Thus, when service performance is better than what the customer had initially expected, there is a positive disconfirmation between expectations and performance which results in satisfaction, while when service performance is as expected, there is a confirmation between expectations and perceptions which results in satisfaction. On the contrary, when service performance is not as good as what the customer expected, there is a negative disconfirmation between expectations and perceptions which causes dissatisfaction.
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Howards & Sheth (1967) concur with the theory, that satisfaction is a function of the degree of congruency between aspirations and perceived reality of experiences. This model has found great degree of support from researchers in various disciplines, and has been widely used to evaluate satisfaction with different products and services. This theory therefore, anchored the survey on customer satisfaction at KRA.
The KRA commitment to the provision of effective, efficient and ethical tax services for social economic development continues to be the driving force behind many customer satisfaction initiatives. Significant improvement in customer satisfaction since 2013, KRA is yet to achieve the target of 80% satisfaction level. This survey has highlighted the various taxpayers’ category levels of satisfaction that may a mix initiative to meet the need by the different categories.
2.3 Customer Satisfaction Models The performance model The Performance Model depict that, the theory that a customer’s perception of a product or service performance, and their expectations of that performance have a positive effect on customer satisfaction, Spreng and Mackey (1996). Performance is defined as the level of quality of the product, or service, as perceived by the customer, relative to the price paid. This perceived performance is described as value. The perceived performance may have a stronger effect on customer satisfaction than expectations, Tse and Wilton (1988).The assessment of satisfaction is closely related to expectations. The Performance Model depict expectations having a direct and positive impact on satisfaction as a result of the part they play as a foundation in the satisfaction evaluation process. The stronger a customer’s expectation, relative to performance information, the greater the impact of expectations as an anchor on satisfaction. The stronger the performance information of the construct, the greater the relative positive effect will be on customer satisfaction.
The Performance Model also shows a positive effect of expectations on perceived performance that is the ability of customer expectations to predict performance. This is felt to be greatest when customers have a lot of experience with a performer who is either predictable or has low variance. The extent of the effect will vary from products to services. Given that KRA service is routine and repetitive, the model of performance therefore, may partially apply in efforts to meet customer expectations.
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The expectations-artefact model Johnson et al. (1996) argue that expectations should not have either a positive or a negative effect on satisfaction, in a unique service like KRA’s. This is because in this context expectations do not act as an anchor, as in the Performance Model. Performance will give rise to the expectations reported by customers. The Expectations-Artefact Model shows the direct positive effect of perceived performance on satisfaction, and a positive relationship between performance and expectations. Expectations are not linked to satisfaction; this illustrates the fact that this construct does not have an effect upon satisfaction. The implications of this Model are simply that to focus on the expectations construct, would be counterproductive to the improvement of customer satisfaction. The argument that expectations are only a by-product of the service production process, and have no effect on customer service, would make any efforts to meet or exceed customer expectations pointless. Instead this Model posits that to improve customer service, service personnel should focus on the improvement of performance. This model resonate with KRA’s service delivery anchors.
In order to measure the levels of satisfaction, a quantitative approach using likert scale is used to measure level of satisfaction across various touch points. Further, in trying to explain the impact of customer loyalty to a business, Reichheld in his 2003 Harvard Business Review article "One Number You Need to Grow" introduced Net Promoter Score. This number is computed by netting off those customers who are highly unlikely (detractors) from those likely to strongly recommend an institution (Promoters). If the net value is positive, the measure indicate more customers are likely to positively endorse a business leading to growth.
Customer satisfaction is generally described in terms of “an evaluative, affective or emotional response”. The literature on satisfaction focuses on the idea that the customer will make a comparison between the performance of the product or service and a certain standard (Ganning, 2000). Parasuraman et al. (1988, 1993) also argue this point; they claim that the standard of comparison is that of predictive expectations; i.e. what the customer believes will happen. Oliver (1981) defines satisfaction as “a summary psychological state resulting when the emotion surrounding disconfirmed expectations is coupled with the consumer’s prior feeling about the consumption experience”. Churchill and Serprenant (1982) explain customer satisfaction as a function of pre-purchase expectations and post purchase product/service performance. The pre-purchase expectation held might be conscious, active or sub-conscious, passive expectations.
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Customer satisfaction or dissatisfaction is a recognized function of the disconfirmation which arises from discrepancies between prior expectations and actual performance. The presumption that a customer’s pre-purchase expectations determine customer satisfaction is based on the assumption that the expectations are formed on the basis of past experience. In cases where customers have no experience, customer expectations are believed to be more an artefact of the service production process and to have no effect on satisfaction Gable, (1996). There are two general conceptualizations of customer satisfaction; these are transaction-specific and cumulative satisfaction.
Fornell (1992) proposes that critical gains of customer satisfaction include loyalty, as loyal customers can create a steady stream of future cash flow for a firm. Lower costs can be achieved in future transactions because a firm that provides high customer satisfaction will devote fewer resources to handling returns, managing complaints and reworking defective items. It promotes insulation of current customers from competition, reduced failure costs, lower costs in attracting new customers and the enhancement of the firm’s reputation. Satisfied customers are more likely to recommend the firm thus promoting its image and reputation. A long term perspective is required. The above gains resonate with KRA service delivery outcomes.
Empirical Review Customer satisfaction is the key factor for successful and depends highly on the behaviors of frontline service providers. Customers should be managed as assets, and that customers vary in their needs, preferences, and buying behavior. A study applied the Taiwan Customer Satisfaction Index model to a tourism factory to analyze customer satisfaction and loyalty. The results showed that perceived quality had the greatest influence on the customer satisfaction for satisfied and dissatisfied customers. In terms of customer loyalty, the customer satisfaction is more important than image for satisfied and dissatisfied customers. CSI was found appropriate for making decisions about allocating resources and for assisting managers in establishing appropriate priorities in customer satisfaction management Anderson and Sullivan (1993).
Service quality is frequently used by both researchers and practitioners to evaluate customer satisfaction. It is generally accepted that customer satisfaction depends on the quality of the product or service offered Anderson and Sullivan, (1993). Numerous researchers have emphasized the importance of service quality perceptions and their relationship with customer satisfaction by applying the NCSI model (e.g., Ryzin et al. (20040; Hsu (2008); Yazdanpanah et al. (2013); Chiu et al. (2011); Temizer and Turkyilmaz (2012); Mutua et al. (2012); Dutta and Singh (2014). Ryzin et al. (2004)
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applied the ACSI to U.S. local government services and indicated that the perceived quality of public schools, police, road conditions, and subway service were the most salient drivers of satisfaction, but that the significance of each service varied among income, race, and geography. Hsu (2008) proposed an index for online customer satisfaction based on the ACSI and found that e-service quality was more determinative than other factors (e.g., trust and perceived value) for customer satisfaction. To deliver superior service quality, an online business must first understand how customers perceive and evaluate its service quality. This study borrowed from e-service quality measures based on the theoretical model comprised constructs to include image, customer expectations, perceived quality, perceived value, customer satisfaction, and loyalty.
A crop insurance study proposed an index for measuring farmer's satisfaction levels with crop insurance. The index was based on the American Customer Satisfaction Index (ACSI), having been adapted to the specific needs of this research. Perceived quality, perceived value and farmer's attitude toward crop insurance was found to have strongest effects on farmer's satisfaction levels. The study further confirmed that customer satisfaction is the leading factor that determines farmers' loyalty. The results suggest that the proposed model can also be used on past insured clients and can give insights on which dimensions to focus most, eventually bringing them back into insurance arrangements. This can as well apply to tax evaders to onboard them again.
Another national wide research, investigated the antecedents and consequences of customer satisfaction. The study found that satisfaction is best specified as a function of perceived quality and “disconfirmation”—the extent to which perceived quality fails to match pre-purchase expectations. Surprisingly, expectations did not directly affect satisfaction, as is often suggested in the satisfaction literature. In addition, the study found quality which falls short of expectations has a greater impact on satisfaction and repurchase intentions than quality which exceeds expectations. Moreover, the researchers found that disconfirmation is more likely to occur when quality is easy to evaluate. Finally, in terms of systematic variation across firms, it was found that elasticity of repurchase intentions with respect to satisfaction to be lower for firms that provide high satisfaction. This implies a long-run reputation effect insulating firms which consistently provide high satisfaction.
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2.4 Comparative Analysis with Competition KRA being a monopoly in the market, SBO Research Ltd choose to do a comparative analysis with other public sector in the energy and health sector. The selection of these two institutions was based on the closeness of their strategic plans with that of KRA. Below is a list of objectives, strategic initiatives and key performance indicators each institution had. a) Kenya Power Customer Satisfaction Initiatives Table 2. 1 Kenya Power- (2016-2021)
Objective Strategic Initiatives Key performance Indicators target Enhanced customer Enhanced customer relationship Improved Customer satisfaction by management structures Satisfaction Survey improving customer Customer segmentation to guide the (CSS) index to 75% service delivery development of an effective engagement strategy Creation/remodeling of customer service centres Implementation of rapid response teams Outsourcing Outsourced meter reading, revenue collection and customer service functions. Complaint handling Upgraded Complaints management module and installed and a web based application to be used by customers. Customer service Implemented in-depth customer service Delight training for all members of staff • Enforced of a uniform dress code for all customer facing-members of staff. Communication Integrated modern customer care applications that interacted with customers including Twitter and Facebook Kenya Power Corporate Plan 2016/17 - 2020/21
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b) National Hospital Insurance Fund Customer Satisfaction Initiatives Table 2.2: National Hospital Insurance Fund (2014-2018)
Objective Strategic Initiatives Key performance Indicators target Improved customer Developed and 80% retention rate retention Implemented incentives SMS for reminders Automated Birthday & Holiday wishes Introduce Self-care Improved quality of Customer satisfaction Implemented contract management service index solution Patient satisfaction E-Procurement – vendor rating & cost index center Revamped call center Enhance customer care center capabilities Establish turnaround times in customer enquiries Improve the Fund’s Improved brand index Scheduled press forums image Enhanced & Operationalize the branding manual Corporate Social responsibility Access to information Improved awareness Public Information & education Index Enhance the Fund’s presence County engagement Leadership and Customer satisfaction Mentoring & customer centric training management index Institute reward strategies according evolvement Employee satisfaction to customer satisfaction levels index Dissemination of strategy to all front & back office staff Enhance internal communication system NHIF Strategic plan 2014-2018
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3. CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction This chapter describes the research design used to meet the objectives of the study. The thematic areas include the research approach, target population, data collection method, sampling and sampling design, data analysis techniques and quality control measures.
3.1 Research Approach The study used both primary and secondary data. Primary data was collected through qualitative and quantitative techniques.
3.1.1 Qualitative Five (5) focus group discussions were conducted with individual tax payers who were based in Nairobi, Kisumu, Nyeri and Eldoret. The focus group discussion consisted of eight (8) participants each. A further eight (8) in-depth interviews were carried out with various stakeholders.
In Depth Interviews: Interviews were conducted with key stakeholders on a one on one basis to obtain deeper insights and explore key attributes considered important by the stakeholders. A discussion guide was used to guide both the focus group discussion and the in depth interviews.
3.1.2 Quantitative Approach Quantitative data was gathered through face-to-face interviews using structured questionnaires from all the stakeholders. The objective here was to quantify the responses and confirm the extent to which respondents held various opinions and perceptions. The data was analyzed to answer the research objectives.
3.1.3 Secondary data sources It involved identifying and analyzing secondary information on KRA and revenue agencies. The documents which were reviewed include: Previous KRA survey reports. Documents related to changes in taxation in the recent past. KRA strategic document e.g. sixth corporate plan 2015-2018. KRA service/taxpayers charter.
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3.2 Target Population The study targeted all external stakeholders of KRA. The customers comprised of Individual taxpayers, Large Taxpayers Organizations (LTOs) Medium Taxpayers Organizations (MTOs, Small & Medium Enterprises, Associations (SMEs), Clearing & Forwarding agents and Suppliers.
3.3 Sampling Design In order to determine the sample for various target customers, Fisher’s Model for computing sample size where the target population is more than 10,000 was used. This is an international best practice for use in surveys where the population is huge and sample elements are heterogeneous and diverse. The sample size was determined by employing the equation below:
* z2* p q Equation n 2 Equation Where; n= refer to the desired sample size Z=the standard normal deviate usually set at 1.96 which corresponds to the 95% confidence level. P= Population of the target population estimated to have a particular characteristic, 50% is normally used because it is the recommended measure if there is lack of reasonable estimate. q=1.0 – p e=degree of accuracy desired in this context set at 0.02.
n=z2*p*q = (1.96)2(0.5) (0.5) =2401 ℰ2 (0.02)2 Table 3. 3 Selection of customer sample size
Error Margin (P- Customer values) Sample(pop >10,000) Comments 5% 384 Lower Accuracy 4.50% 474 4% 600 3.50% 784 3% 1067 2.50% 1537 2% 2401 Recommended for this survey 1.70% 3323 1.50% 4268 1% 9604
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The sample size obtained was proportionately distributed across Individual taxpayers, LTO’s, MTO’s, SME's, Associations, Clearing & Forwarding agents and suppliers across all KRA regions. However, in a bid to ensure all segments had a statistically stable base (minimum n=30, for any analysis parameter), sample adjustments were done. All in all, the survey ensured sample distribution for each segment was proportionate to the segment size. The adjusted sample distribution is as presented in Table 3.2.
Table3. 4: Adjusted sample breakdown
KRA Customers Sample Individual taxpayers 1800 LTOS 180 MTOS 100 SMEs 200 Suppliers 100 Associations 30 Importers Exporters/Clearing & Forwarding Agents 60 Total 2470
Sample Size for Individual taxpayers A normal distribution was used to pick at random 1800 individual taxpayers distributed shown on table 3.3 below. The distribution was based on population spread across KRA regions.
Table 3. 5: Distribution of individual taxpayers
Region Population Sample size Rift valley 1,013,616 343 Southern 462,169 156 Central 751,136 254 Nairobi 1,564,687 529 Western 902,016 305 Northern 625,590 212 Total 5,319,214 1800
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3.5 Data Analysis Qualitative data was processed through content analysis. The audios were transcribed in order to identify themes and patterns. The themes were organized into coherent categories and used to bring meaning to the text. The quantitative data was analyzed through percentages, mean scores and frequencies using Statistical Package for Social Sciences (SPSS) .In this report, the findings are presented in forms of tables, charts and narratives. The quantitative data was collected using a 5 Point Likert Scale designed on a continuum ranging e.g. from strongly agree to strongly disagree among other scales. This helped in computing percentage scores that eventually generated the ultimate measures of customer satisfaction.
Customer satisfaction Computation Customer Satisfaction Index on computing %Average for various touch points-Customer service charter effectiveness, KRA core values, Satisfaction with KRA Staff, Satisfaction with support services, Employees integrity and fairness, complaint handling, quality of service at the contact center, satisfaction with tax processes, KRA performance on functional and operational attributes, performance of KRA systems, effectiveness of tax payer education, quality of communication and quality procurement services
Net Promoter Score Computation This was computed based on a recommendation likelihood scale of 0-10. Promoters score was calculated from those who gave a likelihood score of 9 and 10 while detractors are those who gave a score of 0-6. Net Promoter Score (Loyalty score) = % Promoters - % Detractors
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4. CHAPTER FOUR: DATA ANALYSIS AND RESEARCH FINDINGS
4.0 Introduction This chapter highlights results on evaluation of customers’ perception towards KRA services, extent to which KRA is adhering to Customer Service Standards and Taxpayer’s Charter, ascertaining KRA key areas of strength and weaknesses in a bid to identify gaps and opportunities in service delivery, identifying the source and frequency of taxpayer complaints in regard to service delivery, determining taxpayers’ awareness of KRA services and source of awareness, establishing the effectiveness of taxpayer education programs and other reforms on service delivery, determining overall KRA performance on key customer satisfaction measures - Customer Satisfaction Index, Net Promoter Score, and Loyalty Score, providing comparative analysis of the Authority’s service delivery and identifying and proposing service improvement measures.
4.1. Response Rate In this survey, 2,470 customers were targeted with a total of 2,510 customers participating translating into a response rate of 101%. However, for MTO’s and LTO’s, the response rate was slightly below the target owing to their busy schedules and reluctance to participate in the survey by some of the would be respondents as depicted in table 4.6 below.
Table 4.6: Achieved sample
Target Group Target Achieved Response Sample Rate Individual Taxpayers 1800 1859 103% LTOS 180 172 95% MTOS 100 84 84% SMEs 200 206 103% Suppliers 100 100 100% Associations 30 32 107% Importers Exporters/Clearing & Forwarding Agents 60 60 100% Total Sample 2470 2,513 101%
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4.1.1 Profile by Age and Gender of Individual Taxpayers From the survey, 58% of the individual taxpayers were males while 42% were females. In terms of age category, majority were between 25-44 years, while only 7% were above 45 years. Figure 4.1 below shows the individual taxpayers profile by age and gender.
Figure 4.1: Individual Taxpayers by age and gender
70% 58% 60% 50% 50% 42% 40% % 30% 22% 21% 20% 6% 10% 1% 0% 18-24 yrs 25-34 Yrs 35-44 Yrs 45-55 Yrs 55+ Yrs Male Female Age Gender
4.1.2 Individual Taxpayers Profile by Regions On regional splits, the taxpayers sample was distributed as illustrated in figure 4.2 with Nairobi having the highest sample (32%) , followed by Northern (16%) , Central and Western with each having 15% .
Figure 4.2: Individual Taxpayers by regions
32% 35% 30% 25% 20% 15% 16% 15% 15% 8% 9% 10% 5% 5% 0% Nairobi Central Northern South Rift North Rift Southern Western (n=586) (n=287) (n=292) (n=146) (n=163) (n=99) (n=287)
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4.1.3 LTOs/MTOS/Suppliers/Associations/Importers/Exporters profile by Regions Customers dealing with KRA were targeted for the survey. They were spread across different regions as shown on figure 4.3. Most LTOs were mainly found in Nairobi (46%), Western (16%), Central (6%) and a few 4% from southern. MTOs were spread across all regions. 54% the suppliers were from Nairobi and 32% from Southern. Only a few 8% and 5% were from North Rift and Central respectively. Importers and Exporters were mainly concentrated in Southern (82%) while a few 12% from Western.
Figure 4.3: Customers across different segments
100% 94% 100% 97% 100% 96% 82% 84% 80%
60% 54% 46% 45% 40% 32%
16% 20% 9% 12% 6% 5% 8% 6% 3% 1% 4% 0% Nairobi (n=356) Central(n=17) Northern(n=24) South Rift(n=31) North Rift(n=9) Southern(n=26) Western(n=31)
Large Orgs Medium Orgs Associations Suppliers Importers/Exporters
4.1.4 Interaction with KRA To find out the frequency of interaction, respondents were asked to state the last time they had contact with KRA. Average scores and correlation percentages were computed based on the ordinal question where respondents were required to choose one response from the choices given. From the findings, 59% of the customers interviewed indicated to have interacted with KRA within the last 6 months as illustrated in table 4.7 below. Table 4.7: Interaction with KRA
Individual LTOs MTOs SMEs Associations Avg taxpayers Base 1859 172 84 206 32 Within the last 2 weeks 6% 6% Within the last month 23% 31% 36% 42% 22% 31% Between 2 and 6 months 22% 31% 26% 24% 9% 22% Between 7 months and 1 year 7% 22% 19% 10% 38% 19% Over 1 year ago 42% 16% 20% 24% 31% 26%
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4.1.5 Mode of contact used To find out the mode of contact, questions on ways in which KRA was contacted was asked. Average scores and correlation percentages were computed based on as multiple based question where respondents were at liberty to choose more than one response from the choices given. The study sought to establish the mode of contact used by the taxpayers. On average, 49% of the customers visited KRA offices while only 10% indicated to have used telephone to contact KRA as illustrated in figure 4.4 below.
Figure 4.4: Mode of contact used
80%
60%
40%
20%
0% Individual Associations Taxpayers LTOs (n=172) MTOs (n=84) SMEs (n=206) Avg (n=32) (n=1295) Visited their offices 51% 48% 43% 51% 50% 49% Website 26% 48% 27% 35% 66% 40% Email 14% 9% 19% 13% 6% 12% Telephone 6% 10% 15% 16% 3% 10% Others 1% 1%
______18 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
To find out the reasons for interaction, questions on the reasons for the contact was asked. On table 4.8, average scores and correlation percentages were computed based on as multiple based question where respondents were at liberty to give as many responses as they could. From the findings, the main reasons for interacting with KRA were to file returns and seek information as illustrated below.
Table 4.8: Reasons for interaction Individual LTOs MTOs SMEs Associations Avg Taxpayers (n=172) (n=84) (n=206) (n=32) (n=1859) Seeking information or check details 19% 21% 26% 38% 28% 26% File returns 40% 33% 29% 25% 34% 32% Tax compliance certificate/tax 6% 20% 18% 16% 16% 15% clearance certificate KRA PIN registration/email Login/pin 18% 13% 19% 11% 16% 15% retrieval HELB loan issue 2% 0% 0% 0% 0% 0% License renewal 2% 2% 1% 2% 0% 2% Tax obligations issues 1% 1% 0% 1% 0% 1% Car registration/change number 1% 0% 0% 1% 0% 0% plates/log book search Payments/cheque deposit 10% 0% 0% 0% 0% 2% Others 2% 0% 0% 1% 0% 1%
4.1.6 Provision of feedback In order to establish provision of feedback, respondents were asked whether they received any feedback for their query. Average scores and correlation percentages were computed based 0n a dichotomous question, where the respondents were to either agree or disagree with a given statement. From the findings, 92% of the customers received feedback as indicated in figure 4.5 below.
Figure 4.5: Provision of feedback 100% 80% 60% 40% 20% 0% Individual Associations Taxpayers LTOs (n=172) MTOs (n=84) SMEs (n=206) Avg (n=32) (n=1295) Yes 95% 89% 89% 89% 97% 92% No 5% 11% 11% 11% 3% 8%
Yes No
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4.2 KRA Customer Service Charter To find out the extent to which KRA is adhering to Customer Service Standards and Taxpayers Charter, questions on the awareness of existence of customer service charter, effectiveness and the sources of awareness were asked. A customer service charter is a written policy that communicates/defines what an organization commits in terms of service to internal and external customers. Average scores and correlation percentages were computed based 0n a dichotomous question, where the respondent were to either agree or disagree with a given statement.
4.2.1 Awareness of customer service charter The figure 4.6 below details the response of all the categories sampled and interviewed in this study.
Figure 4.6: Customer service charter awareness 100% 94% 79% 73% 72% 80% 65% 63% 60% 60% 40% 35% 37% 40% 27% 28% 21% 20% 6% 0% Individual Suppliers Associations LTOs(n=172) MTOs(n=84) SMEs(n=206) Average Taxpayers(1859) (n=100) (n=32) Yes 35% 73% 63% 94% 21% 72% 60% No 65% 27% 37% 6% 79% 28% 40%
About 60% of those interviewed were aware of the existence of the customer service charter. Among them, out of 206 SMEs category, 94% were aware of the existence of the service charter. In the category of LTOs, 73% of 172 taxpayers interviewed were also aware.
Figure 4. 7: Individual taxpayers’ customer service charter awareness- by regions
100% 92% 89% 74% 79% 80% 66% 65% 58% 60% 53% 42% 47% 34% 35% 40% 26% 21% 20% 8% 11% 0% Nairobi(n=58 Central Northern South North Rift Southern Western Average 6) (n=287) (n=292) Rift(n=146) (n=163) (n=99) (n=286) Yes 34% 26% 58% 21% 8% 11% 53% 35% No 66% 74% 42% 79% 92% 89% 47% 65%
______20 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Going by regions, there was higher individual awareness of customer service charter existence with Northern and Western region leading with 58% and 53%, respectively. Southern and North Rift regions trailed with 11% and 8% respectively.
Table 4. 9: Comparative Analysis - awareness of customer service charter 2013/2014 2017 /2018 Variance LTOs (n=100) - 7 3% (n=172) - 73% 0% MTOs (n=31) - 7 6% (n=84) - 63% 13% Individual Taxpayers (n=97 8) - 63% (n=1859) - 35% 28% Suppliers (n=60) - 50% (n=100) - 21% 29% We can observe from the table above that there has been a significant drop of awareness on the existence of customer service charter compared to 2013/2014.
4.2.2 Source of Awareness of Customer Service Charter Customers learn about products, services and brands from various sources. It is therefore critical for an organization to evaluate which sources are effective for their customers. In line with the above, the study sought to establish the sources of awareness for KRA service charter to its customers. Respondent were at liberty to choose more than one response from the choices given. Based on the findings, posters within KRA’s building and their website were the main sources of awareness as shown in table 4.10 below.
Table 4. 10: Customer service charter awareness sources
Individual LTOs MTOs SMEs Suppliers Asso. Avg Taxpayers (n=126) (n=53) (n=193) (n=21) (n=23) (In %) (n=654) Newspaper 24% 17% 21% 12% 10% 13% 16% Radio 15% 7% 13% 7% 0% 0% 8% TV 31% 11% 25% 26% 10% 4% 18% KRA’s website 40% 41% 45% 31% 43% 9% 35% Posters within KRA’s 32% 39% 26% 15% 19% 87% 36% buildings Exhibitions and promotions e.g. 12% 11% 6% 4% 5% 4% 7% shows Events held by KRA e.g. launch 6% 8% 11% 3% 0% 4% 6% events, taxpayers week Employees of KRA 9% 2% 6% 3% 5% 0% 4% Friends/family 2% 0% 0% 2% 0% 0% 1%
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The output was compared with that of 2013/2014 and the variances were recorded as tabulated below.
Table 4. 11: Comparative Analysis – Customer service charter awareness sources 2013/2014 2017/2018 V ariance New spaper 2 0% 1 6 % -4 % Radio 1 3 % 8% -5 % TV 1 4 % 1 8% 4% KRA ’s websit e 5 3 % 3 5 % -1 8% Posters within KRA’s buildings 4 0% 3 6 % -4 % Exhibitions an d pr om otion s e.g. 7% sh ow s 1 0% -3 % Ev en ts h eld by KRA e.g. lau n ch 6% events, taxpayers week 6% 0% Em ploy ees of KRA 7% 4% -3 % Friends/family 1% 1% 0%
Further analysis with individual taxpayers revealed KRA website as the main source of awareness across all regions followed by posters and TV. Other notable sources of awareness for the service charter are Radio and KRA employees as shown in table 4.12 below.
Table 4. 12: Customer service charter awareness sources -individual taxpayers
bi(n=202)
Total (n=654)
Nairo Central(n=75) Northern(n=170) South Rift(n=31) North Rift(n=13) Southern(n=11) Western(n=152) Newspaper 24% 15% 19% 29% 16% 23% 18% 33% Radio 15% 7% 9% 17% 10% 15% 27% 24% TV 31% 12% 28% 60% 29% 31% 36% 27% KRA’s website 40% 50% 44% 22% 65% 23% 27% 43% Posters within KRA’s buildings 32% 54% 35% 6% 55% 15% 27% 25% Exhibitions and promotions e.g. shows 12% 8% 17% 11% 0% 8% 27% 19% Events held by KRA e.g. launch events, taxpayers week 6% 1% 9% 5% 3% 0% 9% 12% Employees of KRA 9% 7% 8% 9% 3% 0% 9% 12% Friends/family 2% 0% 3% 0% 0% 0% 0% 7%
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4.2.3 Effectiveness of the Customer Service Charter Based on a scale of 1-5, where 1 is very ineffective and 5 is very effective, respondents were asked to rate the effectiveness of the customer service charter. The final score was gotten as the average of the ratings for each statement and further computed into percentage as presented in figure 4.8 below.
Figure 4. 8: Effectiveness of the customer service charter
100 81% 76% 76% 75% 80 73% 72% 71% 60 40 20 0 Individual Large Org(n=73) Medium SMES (n=193) Suppliers (n=21) Associations Average Taxpayers Org(n=53) (n=23) (N=654)
From the figure above, it can be observed that on average, 75% of the customers perceived the service charter to be effective. Table 4. 13: Comparative Analysis - effectiveness of the customer service charter 2013/2014 2017/2018 Variance LTOs (n=100) - 58% (n=7 3) - 7 6% 18% MTOs (n=31) - 7 1% (n=53) - 7 2% 1% Individual Taxpayers (n=97 8) - 49% (n=654) - 7 3% 24% Suppliers (n=60) - 80% (n=21) - 7 1% -9%
We also observed that individual and supplier categories registered the highest drop. These we suspect and could have culminated from KRA service automation, resulting to less frequent visits to KRA offices where customer service charter is physically domiciled. Most LTOs and MTOs prefer Huduma centres and even wish they could have their own designated counter due to fast delivery of services and lack of queues which would be the ultimate objective of the service charter. From the individual taxpayers’ point of view, Cyber cafes are preferred especially by the millennia generation than physical visits to KRA offices where customer service charter is found. Staff serving in cyber café were perceived to offer good customer services compared to KRA staff. This resulted in minimal or no interaction with KRA offices promoting a drop in awareness of the charter. From the focus group, it was mentioned that clarity on pin registration to clarify whether the service is free or customer is required to pay Ksh 50/= as is ordinarily charged by cyber cafes for registration of pin numbers and filing returns.
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Automation could have encouraged suppliers to seek services outside KRAs physical offices which is commendable given that it has increased service accessibility. However, it’s imperative that KRA enhance the level of awareness of the customer service charter through regular website updates and increase content in order to generate more traffic. KRA may need t0 consider a designated counter at Huduma centre to serve LTOs and MTOs. They should make the website more interactive to increase heat of the service charter features.
From this we could deduce that KRAs website (53%, 35%) and Posters within KRAs building (40%, 36%) continues to be the most effective source of awareness of customer service charter. This denotes that KRA could continue updating the website and printing posters for the customers as they seem to boost awareness about the charter. Although website and posters are the most effective source of awareness of customer service charter, a significant drop was observed majorly on KRA website which could be as a result of customer complaints in accessibility in some towns and frequent downtime. This implies that KRA needs to consider other sources of awareness like mobile phones services and retain usage of television.
Individual taxpayers perceived the service charter to have been very effective (24%) due to faster service delivery and automation. Other said the service charter was effective due to lack of queues, adequate and competent staffs who are friendly and professional. We noticed that the suppliers perception of the service charter effectiveness dropped by 9%. This could have been as a result of complaint handling where they felt that KRA rarely give feedback especially on the tendering process. KRA needs to formulate strategies that will make the service charter more effective to suppliers and MTOs given that they are key stakeholders. This specifically touch on giving feedback on the status of the tendering process.
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4.2.5 KRA Core values To find out the extent to which KRA core values are being observed by KRA employees, respondents were asked to rate the extent to which KRA employees observed the core values using a scale of 1 to 5 where 1 was strongly disagree while 5 was strongly agree. According to KRA sixth Corporate Plan (2015-2018), the core values have since reduced from six to four to include Trustworthy, Ethical, Competent and Helpful to ease recall and internalization by staff. Further, the core values were aligned with the new directions where emphasizing trustworthy and facilitative relationships. The score were obtained as the average of the ratings for each statement and were converted into percentage as are presented in Table 4.14 below. From the findings, an average of 74% of the customers interviewed perceived the employees as living the KRA core values.
Table 4. 14: Living the core values
CATEGORY (in %) (N) Trustworthy Ethical Competent Helpful Average Individual Taxpayers (1859) 75.8% 75.6% 77.4% 79.2% 77% Suppliers (100) 76.8% 77% 77.2% 79.6% 77.7% Clearing Agents (60) 75.6% 77% 73.6% 79.4% 76.4% LTOs (172) 67.2% 66.8% 76.1% 71.1% 70.3% MTOs (84) 67.6% 69.1% 76.8% 72.2% 71.4% SMEs (206) 76% 76.4% 78.3% 77.9% 77.2% Associations (32) 63.2% 65.2% 72.9% 69.7% 67.7% Average 71.7% 72.4% 76.0% 75.6% 74.0%
From the table above, KRA employees were perceived to observe the core values (rated above 70%). Employees were found to observe competency and helpfulness (76% and 75.6% respectively). However, trustworthiness and ethical as core values registered the lowest score (71.7% and 72.4% respectively). Among the categories, suppliers and MTOs registered scores of 77.7% and 77.2% respectively while LTOs and Associations registered a score of 70.3% and 67.7% respectively.
This implies that although the core values are integrated at KRA, it is important to translate them into behaviours that are easy to be understood by both employees and customers. This calls for KRA management to live the values and enhance trust, teach the values, and recognize the values and incorporating core values as part of performance management process.
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4.3 KRA Reforms on Service Delivery To establish the impact of KRA reforms on service delivery, questions on the awareness of existence of reforms currently being undertaken or have been undertaken were asked. In a bid to improve customer satisfaction, KRA implemented a number of reforms. According to KRA sixth Corporate Plan (2015-2018), some of the reform programs undertaken by KRA included: iTax systems and support centres, iCMS (Customs), Mobile payments systems which has already been implemented and SMS gateway solution. Their average scores and correlating percentages were computed based 0n dichotomous questions, where the respondent were to either agree or disagree with a given statement.
4.3.1 Taxpayers awareness of KRA Reforms In order to establish whether taxpayers have seen any impact of these reforms on service delivery, it was important to determine whether they were aware of any reforms that are currently being undertaken or have been undertaken by KRA. Across the various customer segments, about 60% of the taxpayers indicated to be aware of some reforms. Associations and individuals recorded below 40% as shown in figure 4.9 below.
Figure 4. 9: Awareness of KRA reforms
100% 88% 80% 80% 68% 69% 64% 60% 60% 60% 60% 36% 40% 40% 40% 40% 32% 31% 20% 20% 12%
0% Individual Clearing & LTOs MTOs SMEs Associations Suppliers taxpayers Forwarding Avg (n=172) (n=84) (n=206) (n=32) (n=100) (n=1859) (n=60) Yes 36% 80% 60% 60% 88% 68% 31% 60% No 64% 20% 40% 40% 12% 32% 69% 40%
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Based on individual taxpayers, apart from Nairobi, South Rift and Western, all the other regions recorded awareness of below 40% with North Rift recording the lowest awareness levels of 5% as illustrated in figure 4.10.
Figure 4. 10: Awareness of KRA reforms -Individual Taxpayers
100% 80% 60% 40% 20% 0% Total Nairobi Central Northern South Rift North Rift Southern Western (n=1859) (n=586) (n=287) (n=292) (n=146) (n=163) (n=9) (n=286) Yes 36% 44% 30% 36% 42% 5% 24% 40% No 64% 56% 70% 64% 58% 95% 76% 60%
4.3.2 Specific Reforms Undertaken In order to establish specific reforms undertaken by KRA, questions on awareness of specific reforms was asked. Average scores and correlation percentages were computed based on as multiple based question where respondents were at liberty to choose more than one response from the choices given. From the findings, 64% of the taxpayers were aware of iTax systems, 38% mentioned Huduma centres while 36% mentioned mobile payment systems. However, there was low awareness of SMS gateway solution and call centres facilities especially from suppliers and associations as shown in table 4.15 below.
Table 4. 15: Specific reforms - Levels of awareness Individual LTOs MTOs SMEs Associations Clearing & Suppliers Avg taxpayers (n=138) (n=77) (n=124) (n=28) Forwarding (n=31) (n=658) (n=41) Processing of 5% 22% 21% 27% 14% 29% 20% 20% VAT iTax systems 68% 74% 61% 60% 86% 46% 55% 64% Mobile payment 23% 43% 36% 42% 46% 44% 20% 36% systems SMS gateway 2% 8% 8% 15% 4% 12% 0% 7% solution Establishment 36% 52% 53% 57% 21% 39% 10% 38% of Huduma centres Website 10% 22% 31% 34% 7% 41% 20% 24% upgrade Established call 5% 14% 13% 15% 0% 10% 0% 8% centers
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Other reforms mentioned by individual taxpayers include outsourcing of experts to carry KRA services, website upgrade and personalization of email services (one email per user unlike previously where more than two people would share one email and periodic online updates via personal email
4.3.3 Impact of Reforms In order to assess the impact of reforms at KRA, questions on impact of I Tax systems, Huduma centre, processing of VAT, Mobile payment systems, established call centres and website upgrade were asked. Average scores and correlating percentages were computed based on multiple based question where respondents were at liberty to give as many responses as they could as the tables below depict.
Impact of iTax systems on service delivery On assessing the impact of iTax systems, ease of payment using the phone (45%) and fast services (31%) were the top benefits associated with the system. However very few believed it has reduced bribery, it’s accessible and easy to remit tax as shown in table 4.16 below. Table 4. 16: Impact of iTax systems
Impact % Easy to pay using the phone 45% Fast services/very fast/saves time 31% It is convenient to everyone/One is no longer supposed to go to their offices 10% Reduced bribery cases and increased revenue 7% Accessible/Payment can be done from anywhere 5% Cheapest form of payment/Easy to remit tax payments 2% I don’t know much about it 1%
Impact of Huduma Centre on service delivery In order to establish the impact of Huduma center on service delivery, availability and accessibility were mentioned as the main benefits emanating from this service as shown in table 4.17 below. Table 4.17: Impact of Huduma centres
Impact % It is always available/accessible/services bought nearer to the people 13% Fast services 11% Efficient customer service/Offer quality services 8% Time saving 3% Has done away with long queues 3% Reduces corruption 3%
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Impact of processing of VAT on service delivery In order to establish the impact of processing of VAT on service delivery, customers mentioned they experienced faster services (45%), easy VAT filing (34%) as key improvements as shown below in table 4.18 below. Table 4.18: Impact of processing of VAT Impact % Fast services/Prompt services 45% The process of VAT filling has become easy 34% It’s very convenient 7% Promotes accountability 7% Improved revenue collection 7% It has become difficult to evade tax 3% Processing of VAT currently promotes a Friendly environment 3%
Impact of Mobile Payment System on service delivery In order to establish the impact of mobile payment system on service delivery at KRA, customers highlighted convenience (26%) as the main benefit as shown in table 4.19 below.
Table 4.19: Impact of mobile payment systems
Impact % Convenience 26% Very cheap 13% Sends notifications to the customers 13% Providing solutions to problems 13% Reaches more customers 13% Easy access to services 13% Has improved on the loyalty of the members 13%
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Impact of established call centers on service delivery In order to establish the impact of established call centres on service delivery, solving of issues via the phone (26%), ease of contacting KRA (21%) as well as time saving (12%) were mentioned as key benefits associated with call centres as shown in table 4.20 below. Table 4. 20: Impact of established call centre
They can solve queries via phone 26% Easy to contact KRA 21% It saves customers time 12% Quick service delivery 12% Enhances enquiries of customer 9% Easily accessible 6% One can easily reach them via their call centres 3% Reduces long queue in the office 3% Customers are handled effectively 3% Easy communication 3% It’s more convenient to both customers and staff 3%
Impact of Website Upgrade on service delivery When asked to highlight the impact of website upgrade on service delivery, quick access, ease of interaction and provision of updates emerged as the key benefit for the upgrade as shown in table 4.21 below. Table 4. 21: Impact of website upgrade
Impact % The websites have become fast enough/ There has been improvement on system 31% breakdown Increased KRA accessibility/More interaction sessions with KRA 27% Provision of updates/active website/new graphics 21% Provision of more information content/ a lot of options included 10% Helps in avoiding congestion/Improvement in system breakdown 7% Convenient to customers 2% The website highlights KRA services 4% Increase in security 2%
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4.4. Complaint Handling & Resolution To establish whether any problems had been experienced with KRA or whether any form of complaint had been reported to KRA in the last two years, questions on awareness and usage of channels of reporting issues and the effectiveness of the Authority in resolving the complaints were asked. An average score and a correlating percentage was computed based 0n a dichotomous based question, where the respondent were to either agree or disagree with a given statement.
4.4.1 Complaints Incidence When asked whether they have experienced problems with KRA in the past, 20% of the customers claimed to have experienced problems with KRA in the last 2 years. Across customer categories, LTOs and MTOs indicated a higher incidence of complaints compared to other categories as illustrated on figure 4.11 below. Figure 4. 11: Complaints Incidence
100%
80%
60%
40%
20%
0% Individual Clearing & LTOs SMEs(n=206 Associations Taxpayers MTOs(n=84) forwarding Avg (n=172) ) (n=32) (n=1859) (n=60) Yes 4% 27% 33% 17% 28% 12% 20% No 96% 73% 67% 83% 72% 88% 80%
Table 4. 22: Comparative Analysis - complaints incidence
2013/2014 2017/2018 Variance LTOs (n=100) - 34% (n=7 3) - 27 % -7 % MTOs (n=31) - 44% (n=53) - 33% -11% Individual Taxpayers (n=97 8) - 26% (n=654) - 4% -22% Clearing & Forwarding (n=17 0) - 50% (n=60) - 12% -38% From the graph above, there has been a decrease on need t0 complain compared to 2013/2014.
______31 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.4.2 Nature of complaints To assess the reasons for complaints, a multiple response questions were used where respondents were at liberty to choose more than one response from the choices given. Based on the findings, website downtime (46%) followed by delay in service provision (30%) are some of the issues mentioned. Table 4.23 below shows the nature of complaints experienced. Table 4. 23: Nature of complaints
Individual LTOs MTOs SMEs Associations Clearing & Avg Taxpayers Forwarding Base 70 46 28 36 9 7 The website was 21% 41% 50% 44% 78% 43% 46% down Delayed service 10% 33% 18% 36% 11% 71% 30% Renewal/registration 17% 22% 11% 19% 11% 43% 21% of Pin Wrong computation 3% 28% 29% 19% 0% 29% 18% of income tax Problem with my 27% 0% 0% 6% 0% 0% 5% returns
4.4.3 Reporting of complaints In order to establish whether they reported the problem to KRA, an average score and a correlating percentage was computed based 0n a dichotomous based question, where the respondent were to either agree or disagree with a given statement. Findings indicate that only 58% had reported their complaints to KRA as shown in figure 4.12 below.
Figure 4. 12: Reporting of complaints
100%
80%
60%
40%
20%
0% Individual Clearing & Associations Taxpayers LTOs (n=46) MTOs(n=28) SMEs(n=36) forwarding Avg (n=9) (n=70) (n=7) Yes 66% 48% 61% 72% 0% 100% 58% No 34% 52% 39% 28% 100% 0% 42%
______32 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Table 4.24: Comparative Analysis - complaints reporting
2013/2014 2017/2018 Variance LTOs (n=100) - 95% (n=46) - 48% -47 % MTOs (n=31) - 90% (n=28) - 61% -29% Individual Taxpayers (n=97 8) - 88% (n=7 0) - 66% -22% Clearing & Forwarding (n=17 0) - 93% (n=7 ) - 100% 7% We can observe from the graph that there has been a significant drop on need to complain from LTOs, MTOs and Individual taxpayers’ category. Clearing and Forwarding agents reported an increase of 7%. In order to ascertain the deterrents for complaints registration, a question was asked as to why the complaint was not reported to KRA. A correlating percentage was computed based 0n a multiple based question, where the respondent were at liberty to choose more than one response from the choices given. From the findings, lack of knowledge on the procedures to be followed was indicated as the main hindrance (39%). Lack of time to report the problem (25%) and poor response rate were also cited as deterrent to registration of complaints as shown in figure 4.13 below. Figure 4.13: Deterrents for complaints registration
45 39% 40 35 30 25% 25 20 17% 14% 15 13% 10 4% 4% 5% 5 0 I didnt know Lack of time Got They take No action is I didnt see I will visit the Others who to report assistance long to taken even if the need office to somewhere answer the we report the personally else query issue
______33 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.4.4 Taxpayer Complaints channels In order to establish the complaints channels used, a question on the mechanism used to report the problem to KRA was asked. An average score and a correlating percentage was computed based 0n a multiple based question, where the respondent were at liberty to choose more than one response from the choices given. Customers have become increasingly demanding in terms of services they expect from organizations. In view of this, organizations have responded by making themselves accessible to customers. From the findings, physical visit (68%) was the most commonly used channel of complaints followed by telephone (36%) as shown in table 4.25 below.
Table 4. 25: Taxpayer Complaints channels
Individual LTOs MTOs SMEs Clearing & Avg Taxpayers (n=46) (n=28) (n=36 forwarding (n=70) ) (n=7) Visited their offices 78% 68% 71% 54% 71% 68% Telephone 8% 55% 41% 38% - 36% Website 30% 36% 18% 27% 14% 25% Email 10% 32% 12% 19% 14% 17% Customer care desk 20% 0% 0% 0% 14% 17% Postal mail 2% 0% 0% 0% 14% 8% Suggestion box 6% 9% 6% 4% 0% 6% Social media 10% 0% 12% 4% 0% 6%
4.4.5 Speed of Complaint resolution In order to determine the speed of complaint resolution, a question on how fast the complaint was resolved was asked. A correlating percentage was computed based 0n an ordinal scale question, where the respondent was mandated to choose one response from the choices given. The speed at which business responds to customer complaints affects satisfaction levels. Organizations have different time frames for solving customer complaints depending on the nature of their business as ascribed in their service charter. For KRA, about two thirds of the customers’ complaints are resolved within a week as shown in figure 4.14 below. This is could be a long wait for customers who need immediate complain resolution or within 24hours.
______34 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Figure 4.14: Speed of complaint resolution
Over 3 weeks, 10% In less than 24 hours, 26% Within 3 weeks, 17%
Within 2 weeks, 7%
Within a week, 40%
Table 4. 26: Comparative Analysis - speed of complaint resolution 2013/2014 2017 /2018 Variance Less than 24 hrs 38% 26% -12% Within a week 32% 40% 8% Within 2 weeks 12% 7% -5% within 3 weeks 11% 17 % 6% Over 3 weeks 2% 10% 8% We can observe from the graph that there has been some increase on speed of complaint resolution especially on issues solved within a week, within 3 weeks and over 3 weeks while response to complaints in less than 24 hours and within 2 weeks reduced by 12% and 5% respectively which against the expected level of efficiency.
4.4.6 Level of customer Satisfaction with complaints handling Effective complaint handling is fundamental to the provision of a quality service in an organization. An effective complaint handling system provides key benefits to an organization by resolving issues raised by a person who is dissatisfied in a timely and cost-effective way. On a scale of 1 to 5, where 1 was not satisfied at all and 5 extremely satisfied, customers were asked to rate their satisfaction with complaints handling.. The average score was obtained after the ratings for each statement and were converted into percentages as presented in figure 4.15 below.
______35 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Figure 4. 15: Satisfaction with complaint resolution
100% 4% 11% 3% 90% 23% 80% 40% 50% 70% 51% 37% 50% 23% 60% 50% 13% 100% 40% 26% 19% 22% 30% 37% 50% 50% 20% 21% 15% 20% 10% 10% 11% 0% 4% 4% 5%
Not satisfied at all Dissatisfied Neither satisfied nor dissatisfied Satisfied Extremely satisfied As indicated in figure 4.15 above, 53% of the customers indicated they were satisfied with the services while 25% indicated they were dissatisfied. Overall, the satisfaction score on complaint handling was 78%.A comparative analysis was done and tabulated in the table below. Table4. 27: Comparative Analysis - satisfaction with complaint resolution
Individual taxpayers 2013 2017 Variance Not satisfied at all 12% 4% -8% Dissatisfied 27 % 21% -6% Neither satisfied nor dissatisfied 20% 19% Satisfied 38% 51% 13% Extremely satisfied 3% 4% 1%
LTOs 2013 2017 Variance Not satisfied at all 0% 10% 10% Dissatisfied 15% 37 % 22% Neither satisfied nor dissatisfied 27 % 13% Satisfied 48% 40% -8% Extremely satisfied 10% 0% -10%
MTOs 2013 2017 Variance Not satisfied at all 0% 11% 11% Dissatisfied 7% 15% 8% Neither satisfied nor dissatisfied 29% 26% Satisfied 64% 37 % -27 % Extremely satisfied 0% 11% 11%
Clearing & Forwading 2013 2017 Variance Not satisfied at all 15% 0% -15% Dissatisfied 27 % 0% -27 % Neither satisfied nor dissatisfied 22% 0% Satisfied 35% 100% 65% Extremely satisfied 1% 0% -1% ______36 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
We note that there has been a decrease on need to complain in the year 2017/2018. This may be attributed to KRA implementing a harmonized complaint handling systems where complaints issues are dealt systematically by having intervention mechanism in place.
Although KRA website was perceived to be interactive with feedback being received within 24 hours, customers were concerned with the slow network which they claimed contributed to delayed services. There were calls however from focus group participants to streamline services across all KRA regional branches.
Majority of the customers’ preferred physical visits to KRA offices. Although the inquiries were varied, and the staff courteous, there exist some challenges in regard to the waiting periods. Some customers complained of being told to wait for longer time without any solution or feedback. It is important for KRA to give feedback to any complaint within 24 hours.
There were also challenges in regard to hours of operation where customers felt KRA need to broaden their operating hours for ease of accessibility. Some claimed rotational shifts to be introduced to cater for the large number of customers especially during lunch hours when most of the desks were left unmanned.
______37 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.5 KRA Contact Centre A contact center (also referred to as a customer interaction center or e-contact center) is a central place in an organization from which all customer contacts are managed. This section sought to determine whether customers had contacted KRA, the issue to KRA, whether received any feedback and channels used, time taken to resolve issues and awareness of the contact number.
4.5.1 Awareness of KRAs contact Centre Number In order to establish awareness of KRA contact centre number, average scores and correlation percentages were computed based 0n a dichotomous question, where the respondents were to either agree or disagree with a given statement. From the findings, only a third (35%) claimed to be aware of the contact center number. Out of this, only 45% of the MTOs and 43% of the LTOs were aware of the contact number as shown in figure 4.16 below.
Figure 4. 16: Awareness of KRAs contact centre number
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Individual Associations Taxpayers LTOs (n=172) MTOs(n=84) SMEs(n=206) Avg (n=32) (n=1859) Yes 23% 43% 45% 36% 25% 35% No. 77% 57% 55% 64% 75% 65%
4.5.2 Quality of service at the Contact Centre In order to understand customers’ satisfaction based on the quality of service at the contact center, customers were asked to rate its effectiveness. The contact center was rated 72% on effectiveness and while on quality of service offered customers rated it 78% as shown on table 4.28 below.
Table 4. 28: Effectiveness and satisfaction of the contact centre Individual LTOs MTOs SMEs Associations Avg Taxpayers Effectiveness of KRA's contact center 76% 69% 70% 72% 75% 72% Satisfaction with services at contact center 77% 73% 77% 81% 82% 78% Average satisfaction score 76% 71% 73% 76% 78% 74%
______38 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.6 KRA Website The study also sought to ascertain customer awareness levels of KRA website, its usage and quality of information offered.
4.6.1 Awareness of KRA’s website In order to establish awareness of KRA website, average scores and correlation percentages were computed based 0n a dichotomous question, where the respondents were to either agree or disagree with a given statement. From the findings, awareness of KRA website was quite high (85%) across all customers segments apart from individual taxpayers where 35% of them claimed not to be aware of its existence as shown by figure 4.17 below.
Figure 4. 17: Awareness of KRAs website
100%
80%
60%
40%
20%
0% Individual Clearing & Associations Taxpayers LTOs (n=172) MTOs(n=84) SMEs(n=206) Forwarding Avg (n=32) (n=1859) (n=60) Yes 65% 92% 88% 85% 97% 80% 85% No 35% 8% 12% 15% 3% 20% 15%
We can observe from figure 4.1.7 that individual taxpayers had the lowest awareness level at 65% compared to other customers. This may be attributed to frequent visits by taxpayers to cyber café especially to file returns and registration of pin numbers. Cyber cafes are a preference due to convenience and accessibility hence minimizing interaction with the website.
4.6.2 Frequency of visit In order to ascertain the frequency of visit to the website, an average score and a correlating percentage was computed based 0n a multiple based question, where the respondent were at liberty to choose more than one response from the choices given. From the findings, on average, (78%) of the customers stated they frequent the website on a need basis. as illustrated by table 4.29.
______39 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Table 4.29: Frequency of visit
Individual LTOs MTOs SMEs Associations Clearing & Avg Taxpayers (n=158) (n=74) (n=176) (n=31) Forwarding (n=1206) (n=48)
Daily 1% 1% 0% 2% 3% 29% 6% Weekly 3% 4% 7% 4% 3% 8% 5%
Monthly 11% 13% 18% 19% 3% 13% On a need basis 85% 82% 76% 76% 90% 63% 78%
Others 1% 1%
We found that mostly customers visit the website to seek information and to pay taxes. Other mentions included form downloads as illustrated on table 4.30 below.
Table 4.30: Reasons for website visit
(n=48)
Clearing&
Forwarding
Individual Taxpayers (n=1206) (n=158)LTOs MTOs (n=74) SMEs(n=176) Associations (n=31) Avg Tax payments 34% 47% 41% 52% 32% 42% 41% Seek information 61% 70% 53% 71% 55% 83% 66% Download forms 22% 37% 32% 37% 68% 42% 40% Checking updates 26% 32% 30% 20% 23% 33% 27% Others 2% 0% 0% 1% 0% 2% 1%
Majority of customers visit the website on a need basis and to seek information. However, how often a customer visits the website may be dependent on the width and depth of the range of services offered by the site. This may have an impact on visitors’ frequency. It is therefore important for KRA to add content that could add to the customer experience.
KRA can improve their website by use of strong servers and systems that will help maintain and increase speed. The website should be updated regularly to make it active and keep up the traffic. There were also calls for use of animations video clips that will guide the customer through the learning process. However, customers were of the opinion that KRA should regulate the cyber café by standardizing the registration cost.
______40 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.7 KRA services at Huduma Centres In order to establish awareness of Huduma centre, average scores and correlation percentages were computed based 0n a dichotomous question, where the respondents were to either agree or disagree with a given statement. From the findings, 63% stated they were aware while (81%) of members of association interviewed stated that they have visited Huduma center compared to 40% from clearing and forwarding agencies. Figure 4.18 below shows visits to the Huduma centres by different customer segments
Figure 4.18: Awareness of Huduma centre
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Individual Clearing & Associations Taxpayers LTOs (n=172) MTOs(n=84) SMEs(n=206) Forwarding Avg (n=32) (n=1859) (n=60) Yes 54% 69% 71% 61% 81% 40% 63% No. 46% 31% 29% 39% 19% 60% 37%
4.7.2 Frequency of customer website visit In order to ascertain the frequency of visit to Huduma Centre, an average score and a correlating percentage was computed based 0n a multiple based question, where the respondent were at liberty to choose more than one response from the choices given. Findings indicate that on average, (93%) of the customers frequent Huduma centres on a need basis as illustrated by table 4.31 below.
Table 4.31: Frequency of visit
Individual LTOs MTOs SMEs Associations Clearing & Avg Taxpayers (n=119) (n=60) (n=126) (n=26) Forwarding (n=1001) (n=24)
On a need basis 89% 92% 97% 87% 100% 92% 93% Monthly 8% 3% 2% 11% 0% 8% 5% Weekly 1% 4% 2% 2% 0% 2%
______41 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.7.3 Reasons for Website Visit by customers. One of the main reasons mentioned for visiting Huduma center was to seek information (60%).while 24% visit Huduma center to pay taxes as illustrated in table 4.32 below.
Table 4.32: Reasons for visit to Huduma centre
Individual LTOs MTOs SMEs Associations Clearing & Avg Taxpayers (n=119) (n=60) (n=126) (n=26) Forwarding (n=1001) (n=24)
Tax payments 12% 23% 30% 27% 27% 25% 24% Seek information 57% 60% 55% 63% 50% 75% 60% Registration 23% 34% 25% 38% 54% 38% 35% Others 7% 10 10% 9% 19% 0% 11%
Good efficient services is one of the reasons why customers frequent Huduma centre. According to focus group participants, there is need to increase number of attendants at the service desks in order increase the speed of service. There were suggestions that services offered by Huduma should be specified and any payment displayed for all customers to see. There were calls for KRA to diversify to all the counties.
______42 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.8 Customer Satisfaction on Key Touch Points 4.8.1 Satisfaction with KRA Staff Satisfaction with KRA staff on service delivery was rated 74.9%.Key satisfaction elements evaluated across all taxpayers included staff level of knowledgeable, helpfulness and competence as illustrated below in table 4.33. Table 4.33: Satisfaction with KRA staff
Individual LTOs. MTOs SMEs Associations Suppliers Avg taxpayers Base 1859 172 84 206 32 100 KRA staff are knowledgeable 77.5 77.3 79.5 79.7 78.8 78.6 78.6 It is easy for customers to get through to relevant person at 73.2 69.0 70.0 74.0 67.5 78.4 72.0 KRA KRA staff are courteous 77.5 71.0 74.8 79.6 70.0 81.8 75.8 KRA staff are trust worthy 75.4 69.2 69.8 77.1 66.3 80.6 73.1 KRA customers have clear understanding of what 73.8 69.2 74.3 73.1 68.8 80.6 73.3 customers want KRA staff are helpful 79.9 76.5 77.6 77.7 76.9 80.6 78.2 KRA staff are competent 77.1 76.1 76.1 77.9 75.6 81.8 77.4 KRA staff are professional 77.8 69.5 69.5 79.1 66.9 81.6 74.1 KRA staff strive to exceed 73.5 69.8 69.9 72.7 70.6 79.2 72.6 customers' expectations KRA staff respond to customers' queries and 75.5 70.4 75.1 74.6 70.6 78.8 74.2 problems promptly Average satisfaction score 76.1 71.8 73.7 76.5 71.2 80.2 74.9
4.8.2 Customer Satisfaction with support services In order to establish satisfaction with support services, customers were asked to rate the extent to which they agree with the statements in table 4.34 on a scale of 1 for strongly disagree to 5 strongly agree. From the findings, 0verall satisfaction with customer support was rated 68.3% with 69% of the customers indicating that KRA is committed to supporting their businesses/individual long term growth.
______43 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Table 4.34: Satisfaction with support services
Individual LTOs MTO SME Association Avg Taxpayers . s s s Base 1859 172 84 206 32 KRA is committed to supporting my 75.2 66.0 77.8 69.4 69.0 company's/individual long term growth 65.2 KRA audits do not cause inconveniences and disruptions to taxpayers and their business 65.1 63.5 66.3 68.8 67.1 programs 66.5 KRA ensures prompt payments of money owed 73.2 69.8 75.2 69.0 68.7 to taxpayers 68.6 Average satisfaction score 71.2 66.8 66.4 73.1 69.1 68.3
4.8.3 Employees Integrity and Fairness In order to determine integrity and fairness for KRA staff, customers were asked to rate the extent to which they agree with the statements in table 4.35 on a scale of 1 for Strongly Disagree to 5 for Strongly Agree. The final score was obtained as the average of the ratings for each statement and were converted into percentage. From the findings, customers rated employees’ integrity and fairness at 57.9%. However, on institutional integrity and accountability KRA was rated at 71.9% as shown below.
Table 4.35: Employees Integrity and fairness
ua
Avg
Individ l Taxpayer s LTOs. MTOs SMEs Associati ons Supplie rs Base 1859 172 84 206 32 100 KRA employees/officials are of high 74.2 69.1 65.8 74.1 70.6 80.6 71.6 integrity KRA officials or employees discharge their 71.8 61.3 61.7 72.5 68.8 80.8 67.4 duties in a fair and impartial manner KRA officials or employees DO NOT 38.9 expect to receive bribes or entertainment 40.8 36.1 39.2 46.2 36.8 39.6
in order to serve customers efficiently Do you DISAGREE that they actually take 38.9 33.5 31.7 39.3 30 35.8 34.8 bribes (cash, gifts, favors etc.)? KRA upholds integrity and accountability 74.3 70.5 67 76.2 68.1 78.2 71.9 in all its undertakings Average satisfaction score 59.6 55.0 52.5 60.3 56.7 62.4 57.1
______44 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Table4. 36: Comparative Analysis - employee’s integrity and fairness
Employees’ integrity and fairness was constant at 57% in 2013/14 and 2017/18 respectively. We observed a 5% marginal decrease on customers’ perceptions in regard KRA employees not receiving bribes or entertainment in order to serve customers efficiently (44% in 2013/14 compared to 39% in 2017/18) and a further 7% decline on KRA employees not taking bribes (43% in 2013/14 compared to 36% in 2017/18). Most taxpayers who claimed to have given bribes to KRA officers indicated they wanted their services or processes facilitated or fast tracked (59%). Other reasons for giving the bribes included; demand from employers (40%), facilitation of future service delivery (18%), expressing gratitude for the service received (12%) (Corruption Perception Survey, 2017).
We suspect that KRA intervention mechanism to corruption especially on mainstreaming ethics and integrity through education and stakeholder engagement may have stimulated a decline which is encouraging. Further, KRA reforms especially automation of services for example iTax and website upgrade may have contributed to faster delivery of services hence zero or no contact with KRA employees. However, there were concerns in regard to KRA transparency and lack of accountability on tax collected from the public. Focus group participants felt that the Authority should update the public during and after revenue collection.
In order to enhance integrity and fairness, KRA should continue integrating integrity components in all ongoing automation initiatives, demanding transparency and accountability from employees, faster service delivery and introducing a framework for reporting suspicious acts of corruption and corruption related payments to appropriate authorities. ______45 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.8.4 Taxpayer Education and Information In order to establish status on taxpayer education and information, customers were asked to rate the extent to which they agree with the statements in Table 4.37 on a scale of 1 for Strongly Disagree to 5 strongly Agree. The final score was obtained as the average of the ratings for each statement and were further converted into percentages. Taxpayer education is the bridge that connects tax administration and the public; and a key tool that is widely used to transform the tax culture. Findings indicated that customer satisfaction with taxpayer education and information stood at 70.90% as shown below.
Table 4.37: Taxpayer education and information
Individual Large MTOs SMEs Associations Avg Taxpayers Orgs. Base 1859 172 84 206 32 KRA conducts tax payer education programs for businesses that covers basic information 67.6 70.7 70.2 70.5 70.7 70.3 in respect to all taxes KRA issues simplified publications that contain information on all taxes 70.6 68.3 73.9 70.9 administered by KRA Average satisfaction score 69.0 70.6 70.3 72.2 70.6 70.9
Table 4. 38: Comparative Analysis - Taxpayer Education 2013/2014 2017/2018 Variance Tax payer Education 64% 7 1% 7%
From the table above, it can be observed that there has been an increase on taxpayer education and information compared to 2013/2014.
We observe improvements on taxpayers’ education and information which may be attributed to the growth of information technology. Increased ownership and usage of mobile technology has also paved way for accessibility of information. Use of smart phones has accelerated information sharing and increased internet usage. However, the study found that some of the taxpayers were unaware of the requirements in regard to taxation. Those who took part in focus group discussions complained of penalties imposed by KRA of which they were uninformed. Lack of information on the type of taxes requirements and payment criteria either monthly or annually was a challenge to most taxpayers. It is therefore important for KRA to come up with strategies for tax payer education aimed at enhancing compliance of those who do not comply either through ignorance of requirements or penalties.
______46 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.8.5 KRA Performance on functional and operational attributes In order to establish KRA performance on functional and operational attributes, customers were asked to rate the extent to which they agree with the statements in Table 4.39 on a scale of 1 for Strongly Disagree to 5 strongly Agree. The final score (70%) was obtained as the average of the ratings for each statement and were converted into percentage. From the findings, KRA performance on functional and operational attributes was at 70%. This was mainly attributed to satisfaction with registration process (75%), decentralization of operations (74%) and process of filing returns (73%). However, there is need to enhance staff accessibility through emails and phones (67%) and faster response to complaints and enquiries (65%) as illustrated below.
Table 4.39: KRA Performance on functional and operational attributes
CATEGORY Individual LTOs MTOs SMEs Associations Avg Taxpayers Base 1859 172 84 206 30 Process of registration 74% 72% 78% 76% 77% 75% Decentralization of operations to the county 71% 73% 76% 77% 76% 74% level Process of filing returns 72% 67% 76% 73% 76% 73% Modes and channels of communication used 66% 70% 78% 72% 73% 72% Timeliness in delivery of services 73% 67% 74% 69% 74% 72% KRA keeping their brand promise – what 71% 68% 73% 76% 67% 71% KRA promises its customers Efficient and speedy service delivery 73% 67% 70% 69% 75% 71% Accurate collection of taxes 70% 72% 70% 70% 69% 70% Staff ability to answer customer queries and 67% 67% 73% 74% 66% 69% questions The confidentiality given to customers while 67% 65% 70% 76% 63% 68% handling sensitive matters Frequency of communication 68% 64% 71% 67% 72% 68% Taxpayer education programs 65% 67% 63% 66% 79% 68% Staff being accessible through emails and 63% 66% 69% 72% 65% 67% phones Fast response to enquiries and complaints 66% 63% 65% 69% 64% 65% Average Satisfaction Score 69% 62% 72% 72% 71% 70%
One of the key components of customer satisfaction is communication. KRA should strengthen communication channels to enable customers communicate with the staff. It’s also important for the staff to do follow ups. Giving feedback to the customers is also important. KRA needs promoting sharing of knowledge and experiences within the Authority through a robust internal communication strategy.
______47 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.9 Likes and Dislikes of KRA In order to understand what appeals to the customers and the challenges experienced with the Authority, a question on the likes and dislikes about KRA was asked. An average score and a correlating percentage was computed based 0n a multiple based question, where the respondent were at liberty to choose more than one response from the choices given. Understanding what customers like and dislike about an organization helps in unearthing critical factors that makes customers behave in a particular way or react when interacting with the organization. Today’s customer want warm and friendly service, they want to feel valued and cared for; they want emotional connections.
When asked what they like about KRA, 41% of the customers mentioned faster services especially with the online system and good customer service (20%). However, there were complaints in regard to slow online system (29%), long queues during end month (16%) and issues of penalties (13%) as shown in table 4.40 below.
Table 4.40: Likes/Dislikes about KRA
Likes % Dislikes % It is faster while using online/modern 41% Some are very slow/slow system 29% systems Good customer service 20% Long queues during the end months 16% It's more easier to access their services 14% Issue a lot of penalties 13% The work with high professionalism 10% Bribes/Extortions 12% Efficiency in collection of revenue/They 12% The custom officers are arrogant/harsh 8% have efficiency and speedy service deliveries Simba system 6% They do not educate customers about 5% the issues relating to Revenues and the fees It is legal 2% Delays when sending queries 3% It is source of employment in the 2% They are corrupt 3% company A lot of procedures in order for you to 3% get served
Most of the business processes at KRA which previously has been manual has already been digitalized. Automation of services might be the cause of slow network and systems. It is imperative that KRA ensure strong network systems that will increase customer satisfaction.
______48 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.10 Evaluating KRA Systems 4.10.1 Customer Satisfaction with Tax Processes In order to evaluate KRA systems a question on satisfaction with tax processes was asked. Customers were required to rate the extent to which they agree with the statements in table 4.41 on a scale of 1 for Strongly Disagree to 5 strongly Agree. The score was obtained as the average of the ratings for each statement and were converted into percentage. From the findings, satisfaction with the process of obtaining tax compliance certificates was rated 73.8% followed by payment of taxes at 72.9%. However the process of tax refunds was lowest at 64.3%.as illustrated below.
Table 4.41: Customer satisfaction with tax processes
CATEGORY LTOs MTOs SMEs Associations Avg
Base 172 82 206 30 Process of Obtaining Tax Compliance 71.6 73.4 71.6 78.5 73.8 Certificates Payment of taxes 70.8 74.1 71.3 75.4 72.9 KRA Audit and Compliance process 66.6 69.5 71.9 67.4 68.9 Adding and Removing of tax obligations 65.1 65.9 71.3 65.7 67 Process of Obtaining Tax Exemption 64.8 65.5 70.6 65.7 66.7 Certificates KRA handling of VAT Claims 66.2 62.4 67.1 63.6 64.8 Process of Tax Refunds 64.8 62.1 68.7 61.4 64.3 Average Satisfaction Score 67.1 67.6 70.4 68.2 68.3
Although process of obtaining tax compliance certificates and payment of taxes was perceived to be satisfactory, there were concerns in regard to lack of clear channels of escalating issues arising from interest and penalties since most of the staff referred to either lacked authority or the knowledge to sort out the issues on hand. KRA should put more effort in building capacity in order to improve customer service delivery. Knowledge management is also paramount for information sharing.
______49 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
4.10.2 Satisfaction with KRA’s systems In order to evaluate KRA systems, a question on satisfaction with KRAs systems was asked. Customers were required to rate the extent to which they agree with the statements in table 4.42 on a scale of 1 for strongly disagree to 5 strongly agree. The final score was obtained as the average of the ratings for each statement and were converted into percentage. The overall score for customer satisfaction with KRA systems stood at 76.7%. Customers were satisfied with pin checker (81.9%), tax compliance certificate checker (81.2%), common cash receipting system (80.3% and iTax (80.1%) However, there were concerns in regard to flow meters for exercise registered firms rated at 64% as illustrated below.
Table 4.42: Customer satisfaction with KRA systems
Individual LTOS MTOs SMES Associations Clearing & Avg taxpayers Forwarding Base (n) 1859 172 84 206 32 60
PIN Checker 81.6 78.2 85.1 82.9 81.5 82.2 81.9 Tax Compliance Certificate Checker 74.2 76.7 82.9 81.6 86.7 85 81.2 Common Cash Receipting System 73.9 74.5 78.3 85.2 80 90 80.3 iTax 77.1 72.4 82.4 84 84.3 80.6 80.1 Simba System/ iCMS 77.8 76.9 72.7 86.7 82.2 79.3 Electronic Cargo Tracking System/regional electronic cargo 81.5 81.9 62.7 75 76 81.3 76.4 tracking system Manifest management system 74.3 56.7 71.4 80 80 72.5 Customs Oil stock Information 60 72.2 68.6 70 90 72.2 System Flow meters for Excise registered 60 73.3 66.7 40 80 64 firms Average Satisfaction score 73.4 73.6 74.5 80.7 74.8 83.5 76.7
In order to enhance satisfaction score with KRA systems, the authority needs to provide technical support for issues arising from these systems. This is especially on communication interface on iTax, pin checker and tax compliance certificate checker. Customers were of the opinion challenges arising from the system need to be sorted out with no delay or need to visit KRA offices.
There were also concerns in regard to cyber cafes where customers felt that majority of the operators lacked training and knowledge on tax matters. Individual taxpayers especially students filing returns were the most affected with some citing they were registered for obligations not applicable to them. There were suggestions that KRA should provide educational programs targeting the public that will encourage self-service especially on iTax profile management.
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4.11 Quality of Communication In order to determine the quality of communication, customers were asked to describe their impression of communication within KRA. A correlating percentage was computed based 0n an ordinal scale question, where the respondent was required to choose one response from the choices given. Communication is a critical factor as it promotes good relationship and helps create clarity on issues that may affect customers’ satisfaction. From the findings, about 66% of the customers indicated KRA at least keeps them adequately informed as illustrated in table 4.43 below.
Table 4.43: Quality of communication
Individual Clearing & LTOS MTOs SMES Associations Suppliers Avg taxpayers Forwarding
Base (n) 1859 172 84 206 32 100 60 KRA keeps customers 46% 18% 8% 4% 7% 0% 13% fully informed 14% KRA keeps customers 21% 32% 39% 20% 15% 28% 33% fairly well informed 27% KRA keeps customers 21% 20% 25% 24% 33% 34% 20% adequately informed 25% KRA gives customers 7% only a limited amount 18% 26% 43% 35% 28% 23% of information 26% KRA doesn’t tell 5% customers much at all 13% 2% 10% 11% 9% 10% about what is happening 9%
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4.12 Supplier Satisfaction with Procurement of Goods and Services In order to evaluate suppliers satisfaction with procurement of goods and services, suppliers were asked to rate the extent to which they agree with the statements in Table 4.44 on a scale of 1 for strongly disagree to 5 strongly agree. The final score was obtained as the average of the ratings for each statement and were converted into percentage. The overall satisfaction with KRA Procurement of goods and services was rated at 76.7%. Suppliers rated procurement process at 81.2% signifying a significant satisfaction level while communication on outcome of a tender was rated lowest (71.4%) as illustrated below.
Table 4.44: Supplier satisfaction with procurement of goods and services
Attributes (n=100) % KRA’s procurement process follows the guidelines set by Public Procurement and 81.2 Oversight Authority (PPOA) The specifications in the tender documents are clear and not ambiguous 80.8 Prequalification process is fair and transparent 80.8 The advertising process of tenders in the print media and at KRA’s website is clear 79.2 The evaluation of tenders is clearly explained to all bidders 79 Execution period given for us to complete the work/assignment is realistic 78.8 The procurement of goods and services at KRA is done in a fair and transparent 77.4 manner Payments are done in accordance with contract payment terms 77.4 Overall Satisfaction with KRA as a supplier 74.7 KRA gives adequate time for submission of responses to bids 72.8 The payment process is clear to suppliers 72.2 Bidders are informed the reason why their bids were not successful upon inquiry 72 There is adequate communication about the outcome of tenders 71.4 Average Satisfaction Score 76.7
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Table 4. 45: Comparative Analysis - satisfaction with procurement of goods and services
Attributes 2013/14 2017 /18 Variance The payment process is clear to suppliers 88% 7 2% -16% There is adequate communication about the outcome of tenders 83% 7 1% -12% Prequalification process is fair and transparent 90% 81% -9% KRA gives adequate time for submission of responses to bids 81% 7 3% -8% The procurement of goods and services at KRA is done in a fair and 85% 77% transparent manner -8% The advertising process of tenders in the print media and at KRA’s 84% 7 9% website is clear -5% Payments are done in accordance with contract payment terms 82% 77% -5% The specifications in the tender documents are clear and not ambiguous 85% 81% -4% The evaluation of tenders is clearly explained to all bidders 83% 7 9% -4% KRA’s procurement process follows the guidelines set by Public 83% 81% Procurement and Oversight Authority (PPOA) -2% Execution period given for us to complete the work/assignment is 80% 7 9% realistic -1% Bidders are informed the reason why their bids were not successful upon 7 2% 7 2% inquiry 0% Overall Satisfaction with KRA as a supplier 80% 7 5% -5% Average Satisfaction Score 83% 77%
From the table 4.45 above, it can be noticed that there has been a decline on suppliers’ satisfaction with procurement of goods and services compared to 2013/2014. We can also observe that payment processes and communication on the outcome of the tenders registered the highest drop in 2017/2018.
In order to increase supplier satisfaction score, it is imperative that KRA enhance communication through email and sms platforms especially the outcome of the tendering process. KRA needs to create more relationship with suppliers by engaging them in forums and sharing useful market information with them. There were calls from focus group participants for KRA to partner with suppliers in meeting corporate social responsibility. This may include a mixture of social and environmental responsibilities.
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4.13 Overall Customer Satisfaction Index The overall satisfaction index for KRA in the financial year ending June 2017 stands at 71.9%. Although this is a good performance, KRA needs to improve service delivery so that it can attain a customer satisfaction index of 80% which is the point of delight. Table 4.46 below shows that suppliers had the highest satisfaction rating followed by Clearing & forwarding Agents. These are the only two customer segments that scored above 75%. The least satisfied customer segment is LTOs (69.7%) followed by MTOs (70.8%).
Table 4.46: Overall Customer satisfaction Index
Individual Individual Taxpayers LTOs MTOs SMEs Associations Clearing forwarding & Suppliers Score Effectiveness of customer 73.0 76.0 72.0 76.0 81.0 71.0 74.8 service charter KRA core values 77.0 70.3 71.4 77.2 67.7 76.4 77.7 74.0
Satisfaction with KRA staff 76.1 71.8 73.7 76.5 71.2 80.2 74.9
Satisfaction with Support 71.2 66.8 66.4 73.1 69.1 69.3 services Employees Integrity and fairness 59.62 55.04 52.46 60.26 56.74 62.44 57.09 59.9 Complaint Handlings 77.2 73.5 76.8 80.4 81.8 80.0 78.3
Quality of service at the 76.4 71.1 73.2 76.0 78.3 75.0 contact center Satisfaction with Tax 67.1 67.6 70.4 68.2 68.3 processes KRA Performance on 68.8 67.9 71.7 71.8 71.2 70.3 functional and operational attributes Satisfaction with KRA 73.4 73.3 74.5 80.7 74.8 83.5 76.7 systems Tax payer education 69.1 70.6 70.3 72.2 70.6 70.9 Quality of Communication 64.6 64.1 67.0 65.8 63.8 63.2 79.2 66.8
Supplier satisfaction with 76.7 76.7 procurement of goods and services Satisfaction Score Index 72.2 69.7 70.8 73.9 71.9 75.8 76.4 71.9
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Table 4.47: Comparative satisfaction scores – 2013/201 – 2016/2017 2013/14 2016/2017
Customer service charter 74.8% KRA core values 68.2% 74% Staff perception 68% 74.9% Support from KRA 65% 69.3% Integrity and fairness 69% 59.9% Complaint Handlings 63% 78.3% Quality of service at the contact center 69% 75% Tax processes 71% 68.3% KRA Image 69% 70.3% KRA systems 73% 76.7% Tax payer education 63% 70.6%
Communication 66.8% Procurement of goods 60% 76.7% Customer Satisfaction Score Index 65% 71.9%
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4.14 Summary of Regional Ratings on Customer Satisfaction Across the regions, KRA core values had the highest rating in Central and Northern region (79.8% and 79.2 respectively). Quality of service at the contact center generated the highest score (80.5% and 79.8% ) among North Rift and South Rift customers while Nairobi region was rated highly on KRA systems (82.5%). Customers from the Southern region were satisfied with complaint handling mechanisms (80%). as illustrated below by table 4.48 below.
Table 4.48: Regional ratings
Nairobi Central Northern South North South Wester Avg Rift Rift ern n Effectiveness of Customer service charter 70.8% 76.8% 72.5% 72.9% 69.2% 70.9% 76.1% 72.7% Satisfaction with services received from KRA 75.6% 77.0% 70.1% 75.9% 69.6% 71.1% 74.3% 73.4% KRA core values 76.2% 79.8% 78.2% 77.3% 77.7% 76.4% 74.6% 77.2% Satisfaction with Support services 75.9% 78.7% 75.3% 76.7% 76.3% 76.8% 74.0% 76.3% Employees Integrity and fairness 69.0% 72.6% 71.3% 72.4% 76.7% 73.4% 69.3% 72.1% Complaint Handlings 66.4% 69.4% 70.0% 68.0% 71.8% 73.1% 67.1% 69.4% Quality of service at the contact center 70.0% 74.0% 55.0% 73.3% 70.0% 80.0% 61.1% 69.1% Quality of service at the contact center 79.0% 79.2% 74.1% 79.8% 80.5% 79.4% 73.4% 77.9% Perception towards services 69.8% 71.8% 65.2% 65.6% 68.5% 60.0% 68.7% 67.1% Satisfaction with Tax processes 68.3% 69.7% 64.1% 65.6% 68.6% 58.0% 67.8% 66.0% Satisfaction with KRA systems 82.5% 72.0% 71.3% 80.5% 72.5% 78.1% 73.0% 75.7% Tax payer Education 64.5% 70.3% 73.2% 73.8% 73.7% 71.2% 67.3% 70.6% Quality of Communication 64.5% 58.2% 70.4% 69.3% 68.0% 60.8% 62.5% 64.8% Satisfaction Score Index 71.7% 73.0% 70.0% 73.2% 72.5% 71.5% 70.0% 71.7%
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4.15 Net Promoter Score (NPS) Net Promoter Score, or NPS, is a form of measurement that is used to gauge customer experience. The measurement starts from 0 to 10
The results are grouped as follows Promoters (score 9-10) are loyal enthusiasts’ customers who will keep buying and referring others, hence promoting growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
Detractors (score 0-6) are unsatisfied customers who can damage your brand and impede growth through negative word-of-mouth.
A positive NPS (>0) is considered as an indication of a good satisfaction while a negative NPS (<0) is considered as an indication of dissatisfaction.
What is the likelihood of you recommending KRA to a friend or colleague?
Table 4.49: NPS summary of the various stakeholders is presented as follows
Promoter Neutrals Detractors NPS Individual Taxpayers 71% 5% 24% 47% LTOs 67% 13% 14% 53% MTOs 36% 54% 10% 26% SMEs 35% 44% 21% 14% Associations 43% 43% 14% 29% Clearing & Forwarding 27% 60% 13% 14% Suppliers 42% 36% 22% 20% Average 46% 36% 17% 29%
Overall, the NPS was positive (29%) an indicator customers are satisfied with KRA services. More importantly, a significant number of customers are likely to pass positive word of mouth to other taxpayers/citizens. From the findings, a higher proportion of LTOs (53% are more positive with KRA services compared to other customer segments.
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4.16 Brand Personality In order to bring out the current KRA brand alive, a qualitative approach through focus group, bran personification of KRA was conducted. KRA was described as shown in table 4.50 below.
Table 4.50: KRA Brand personification
Description Age 45-50 years married with children Character- Merciless. Dictatorial, hard facial expression, serious and a loner. He doesn’t talk much but only when he needs something from you Profession Shylock and an accountant – “because they are trading with your money and they love it when you don’t pay”. Hang outs Westland and high end places Transport He uses tinted Range rover or Lamborghini Hobby He plays Golf but very bossy in the field Whether he can He is the kind of person that you can visit and would leave you at the sitting room be visited and go on with his business. He doesn’t talk much but he’s very intelligent. Relationship Would want him to be a friend as the friendship will be beneficial
Brand Personality Analysis & Implications The brand is considered to be mature (systems and structures are in place). It is also perceived to be stringent in its structures with no possibility of bending. It’s also perceived to be healthy and financially stable. The brand is largely perceive to embrace modernity. The implications for the above analysis is that the brand is viewed as strong with good structures which helps in building confidence in regard to how it operates. On technology front, KRA is viewed to be agile which allows it to adopt new technology and new ways of doing things. However, there is some negative associations in regard to its friendliness to its customers.
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5. CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Summary of findings Based on the findings, the overall satisfaction index for KRA for the financial year ending June 2017 stood at 71.9% against a target of 80%. This was however an improvement compared to 2014 where the index was 65%.The improvement was realized from shift in satisfaction on adherence to core values, Customer perception on staff, Support given by staff to taxpayers and complaint handling. However, there was a decline on customer satisfaction with the level of integrity and fairness exhibited by staff. Table 5.51: Comparative satisfaction scores – 2013/201 – 2016/2017
2013/14 2016/2017
Customer service charter 74.8% KRA core values 68.2% 74% Staff perception 68% 74.9% Support from KRA 65% 69.3% Integrity and fairness 69% 59.9% Complaint Handlings 63% 78.3% Quality of service at the contact center 69% 75% Tax processes 71% 68.3% KRA Image 69% 70.3% KRA systems 73% 76.7% Tax payer education 63% 70.6%
Communication 66.8% Procurement of goods 60% 76.7% Customer Satisfaction Score Index 65% 71.9%
a) Individual Taxpayers Among individual taxpayers, the satisfaction index improved by 4.1% from 68.0% in 2013 to 72.1%. On complaint handling, 54% indicated they were satisfied which is an improvement from 2013 where only 39% were satisfied. There was also notable improvement on customers who indicated KRA staffs act professionally from 70% in 2013 to 76% in 2017. However, on integrity and fairness, there was a slight decline from 64% in 2013 to 60% in 2017. A similar trend is also observed with service charter awareness which declined from 63% in 2013 to 35% in 2017.
b) LTOs The overall score for Large Taxpayers was 69.7% which was similar to the score achieved in 2013. On service charter awareness, LTOs recorded some improvements from 65% in 2013 to 73% in 2017.
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Similarly, on reform awareness, 80% of LTOs indicated they are aware compared to 2013 where the awareness level was 60%. On level of professionalism, there was slightly improvement on KRA ratings from 70% in 2013 to72% in 2017. On integrity and fairness, KRA rating dropped from 64% in 2013 to 55% in 2017.
c) MTOS The overall satisfaction score for MTOs was 70.8%. In regard to reforms awareness, there was some improvements in terms of customer’s awareness on reforms from 54% in 2013 to 60% in 2017. On the same note, there was also improvement on levels of perception in regard to staff professionalism from 69% in 2013 to 73% in 2017. In regard to complaint handling, KRA recorded significant improvement from 36% in 2013 to 48% in 2017. However, MTOs scored KRA at 53% on integrity and fairness in 2017 which was a significant drop from a rating of 62% in 2013.
d) SMES The overall satisfaction score for SMEs stood at 73.9% which was an improvement from 68% in 2013. A number of SMEs (76.8%) were happy with KRA systems especially the Simba System/ iCMS (86.7%) Other areas that were rated highly by SMEs included complaints handling (80.4%) and KRA core values (77.2%).However the report indicated a need to improve on integrity and fairness which was ranked lowest at 63.3%.
e) Clearing and Forwarding Agents The overall score for clearing and forwarding agents stood at 75.8% which is an improvement of 9.8 %( from 66% in 2013). On complaint handling, KRA was rated at 100% in 2017 on satisfaction which is a significant shift from 42% in 2013. On reforms awareness, there was however substantial drop from 82% in 2013 to 68% in 2017.
f) Suppliers Overall satisfaction index for suppliers stands at 76.4% a decline of 7.6% (from 84% in 2013 to 76.4% in 2017). Dissatisfaction areas include integrity and fairness, lack of adequate time for submission of responses to bid and bidders not being informed as to why there bids were not successful. However, KRA was perceived to follow guidelines set by Public Procurement and Oversight Authority (PPOA). Further, the prequalification process was said to be fair and transparent.
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g) Associations
The overall satisfaction score with KRA by Associations was 71.9%. KRA was rated highly on effectiveness of the service charter (81%) and complaint handling (81.8%). However, customers’ were dissatisfied with communication at KRA.
5.2 Conclusions Although a significant customer satisfaction improvement (6.9%) has been realised in 2017 compared to 2013, this is significantly below the 2017 target of 80%. If integrity and fairness (59.9%), communication (66.8%) and tax process (68.3) is improved, the gap between target and actual customer satisfaction can be reduced. This calls for a continuous reforms implementation at KRA to realise the set customer delight target.
5.3 Recommendations Objective Research Findings Recommendations (a) Customer The overall satisfaction 1. Successful customer service revolves around satisfaction score score stood at 71.9%, an product and service knowledge. KRA should improvement of 1.9% therefore invest in building knowledge about their (from 65% in 2013 to products with customers. 71.9% in 2017). 2. It is also important for KRA to keep customers Key satisfaction drivers updated on initiatives that it is undertaking in a include quality of bid to improve customer experience as it only services at the contact through understanding the efforts being put, center, procurement of customers can reciprocate with appreciate. goods and services , 3. With technology revolution among customers, professional and helpful KRA can take advantage of the new staff, complaint communications channels in the market for handling mechanism example use of social media, web chat and emails and easier process of to reach out to their customers. registration
(b) Net Promoter Although the average 1. Increase customer satisfaction through frequent score NPS score is noted at feedback from your customers. 29%, LTOs registered 2. Regular training of customer service agents. the highest NPS score.
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Objective Research Findings Recommendations (d)Interaction Most taxpayers only 1. Website in a greater way is the key touch point with KRA interact with KRA while between KRA and customers. making returns only. For 2. This could be the reason why 50% of the others, they file these complaints customers had were limited to website. returns online making 3. It is therefore important for KRA to ensure the website the main point website is active all the time and it is easy for of contact. customers to navigate. The authority should also ensure the website is up to date and all communication a customer may be looking for is accessible. (e)Reforms at According to the survey, 1. Reforms cost money and are meant to solve KRA only 60% indicated they challenges. When the targeted groups does not are aware of reforms at understand or know the reforms undertaken, the KRA. Further, when investment is not value for money. asked about specific 2. KRA should therefore invest in making their reforms, iTax and reforms known to all their customers to ensure Huduma center services their uptake. KRA should make it know to came out strongly customers about the SMS gateway solution and call center facility to help ease pains customers may be undergoing. 3. A key action would be to share the information through various platforms e.g. SMS to any customers who would otherwise have utilized the above services. (f) Effectiveness Effectiveness of 1. KRA should ensure that the customer service of customer customer service charter charter documents are easy to read and service charter seem to be increasing, understand. from 60% in 2013 to 75% 2. Introduce mystery shopping surveys to monitor in 2017 customer service standards 3. In order to make the service charter more effective, Departments should be encouraged to be as detailed as possible in setting out their standards and targets for service delivery and interaction with customers. This will assist in assessing and monitoring performance. (g) Core values Employees were 1. There is need to recognize and reward values- perceived to observe the centric behaviors. This will give employees an core values. opportunity to nominate co-workers for The average satisfaction successfully living the values. score was rated at 74% 2. KRA should re-inforce core values in all communications, including all meetings and in brochures and newsletters. 3. It’s imperative to teach values during trainings and orientations.
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Objective Research Findings Recommendations (h) Satisfaction Satisfaction with complaint 1. KRA should continue strengthening the with complaint resolution increased by 27% mechanisms existing in order to provide handling (from 51% in 2013 to 78% in complaints resolutions. 2017).This is mainly attributed to prompt service 2. Staff should be empowered to provide at Huduma centres and an solutions at the appropriate level, especially upgraded website which has at the reception encouraged online registration. (i) Complaint Personal visitation to the KRA 1. KRA should have a friendly system to lodging channels offices is the most effective receive and respond to complaints mechanism of complain handling. However, most of 2. KRA should have clear systems & procedures the customers don’t know for staff to deal with complaints and provide where to complain or present solutions. their grievances 3. KRA should have a recording system to capture complaint data, and use it to identify problems and trends
4. KRA should come up with mechanism to improve service delivery in identified areas of complains
(j)Time taken to 36% of customers’ issues were Most customers want their complaints to be resolve issues resolved within 24hrs in 2013 addressed as soon as possible after compared to 26% in 2017 communication therefore KRA should strive to while 32% of customers issues attend to complaints issues within 24 hours. were resolved within a week in 2013 compared to 40% in 2017 (k) Awareness of The overall score for website 1. Create more awareness and educate people KRA website awareness declined by 4% on how to use the website. (85% in 2017 compared to 89% in 2013).This was mainly 2. simplify the language on their website so attributed to Individual that it’s easy to understand taxpayers and clearing and forwarding agents whose 3. Include Kiswahili for ease of understanding awareness was below average (35% and 20% respectively).
Lack of interaction between staff and customers as most individual taxpayers prefer using cyber cafes
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Objective Research Findings Recommendations (l)Awareness of Awareness with Huduma 1. Increase more awareness through Huduma center center was rated at 63%. advertisement and brochures
This was mainly attributed to 2. Open more centres in designated places Individual taxpayers and within the city. Expand in the rural areas clearing and forwarding especially the interior. agents whose awareness was the lowest (54% and 40% 3. Increase space to accommodate more respectively). people (m)Reforms Call centres and SMS gateway 1. KRA should make use of all the mobile undertaken by solutions scored the lowest on contacts in their database to send KRA reform awareness. This is promotional messages to the customers mainly attributed to lack of regularly usage of the two facilities from 2. KRA needs to unveil a unique call center customers and KRA. number for its customers to access customer care services more efficiently. Apart from maintaining high quality standard of customer service, it will also ensure customer complaints are resolved in good time and through various media channels. (n)Frequency On average, 93% of the 1. Have more personnel allocated to serve and reasons for customers visit Huduma center customers in order to ease congestion. visit on need basis to seek 2. Have different counters serving different information categories of customers for example, large taxpayers should be served separately. This will fasten service delivery 3. Increase working hours in order to serve more people. (o)Support Satisfaction score was rated at KRA should support customers company long from KRA 68.3% term growth through 1. Prompt payment of services and products i.e. pay on time 2. Personalize the relationship. Set a day to interact with customers for example organize some sports day. They can also be included in some strategy meeting 3. Support Customers Company by sharing information. This can be done through newsletter and keep them informed on any new changes in the organizations. (p)Taxpayer Satisfaction with education and KRA should continue offering free product education and information rated at 70.9%. training and support information However training and education was rated low by individual taxpayers
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Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1988), “SERVQUAL: a multiple-item scale for measuring consumer perceptions of service quality”, Journal of Retailing, Spring, pp. 12-40. Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1994), “Reassessment of expectations as a comparison standard on measuring service quality: implications for further research”, Journal of Marketing, Vol. 58 No. 1, January, pp. 111-24 Peyton, R., Pitts, S., Kamery, R.H., (2003) - „Consumer Satisfaction/Dissatisfaction: a review of the literature prior to the 1990’s”, Proceedings of the Academy of Organizational Culture, Communication and Conflict. Vol. 7(2) Spreng, R.A., Page, T.J. Jr. (2003) - A Test of Alternative Measures of Disconfirmation, Decision Sciences, 34 (1), p. 31 - 62. Vavra, Terry G. (1997) - Improving Your Measurement of Customer Satisfaction: A Guide to Creating, Conducting, Analyzing, and Reporting Customer Satisfaction Measurement Programs. American Society for Quality Westbrook, R.A., Reilly,M.D.- “Value-percept disparity- an alternative to the disconfirmation of expectations theory of consumer satisfaction”, în Bagozzi, R.P. and Tybout,A.M. (eds.)- Advances in Consumer Research, vol.10, 1983, p.256-261.
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QUESTIONNAIRE Appendix 4. Individuals/ General Public Questionnaire INTRODUCTION Good morning/afternoon. My name is……………………………………from a research company called SBO Research Ltd. We are conducting a customer satisfaction and corruption perception survey on behalf of the Kenya Revenue Authority (KRA). KRA would like to know what their customers think about their services in order to ensure high levels of customer satisfaction. The information you provide will remain confidential and the results will be analyzed and reported collectively. May I ask you a few questions? SECTION I: MAIN INTERVIEW
PART A: CUSTOMER SATISFACTION ASSESSMENT
Q1) When I mention the name Kenya Revenue Authority, what is the first thing that comes to mind? Write in Verbatim - One mention only. PROBE for meanings and associations.
Q2a) Do you have a PIN (Personal Registration Number)? Yes 01 If yes, please continue to 3 No 02 If no, skip to Q2b and close
Q2b) Why not?
Q3) In your opinion, what is the role of KRA? Write in verbatim? Collection of revenue 01 To assess and account for all revenues in accordance with 02 specific laws To advise on matters relating to the administration of 03 revenue Others (specify)
Q4a) Are you aware that KRA has a taxpayer service charter? Yes 01 If yes, please continue to Q4b No 03 If no, skip to Q5
Q4b) How did you get to know about KRA’s taxpayer service charter? Newspaper 01 Radio 02 TV 03 KRA’s website 04 Posters within KRA’s buildings 05 Exhibitions and promotions e.g. shows 06 Events held by KRA e.g. launch events, taxpayers week 07 Employees of KRA 08 Others – please specify;
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Q4c) On a scale of 1 to 5 where 1 = very ineffective; 2 = somewhat ineffective; 3= neither effective nor Ineffective; 4 = somewhat effective and 5 = very effective, how would you rate the effectiveness of KRA’s customer service charter? Very ineffective Somewhat Neither Somewhat Very ineffective effective nor effective effective ineffective 01 02 03 04 05
Q4d)Why do you say so?
Q4a) Are you aware that KRA Vision Yes No Mission Yes No Core values Yes No
Q5a) Are you aware of any reforms that are currently being undertaken or have been undertaken by KRA? Yes 01 If yes, please continue to Q6b No 04 If no, skip to Q7a
Q5b) What are these reforms that you are aware of? Any other? Processing of VAT 01 I Tax systems 02 Mobile payment systems 03 SMS gateway solution 04 Establishment of Huduma centres 05 Website upgrade 06 Established call centers 07 Others (specify)
Q5c) how have these reforms impacted on KRA’s service delivery? Q6c) Impact of the reforms on KRA’s service Q6(c) Reforms they are aware of delivery Processing of VAT I Tax systems Mobile payment systems SMS gateway solution Establishment of Huduma center Website upgrade Established call centers Others (specify
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Q6a) Using a scale of 1 to 10 where 10 = VERY SATISFIED and 1 = NOT SATISFIED AT ALL,I want you to tell me how satisfied you are with KRA on each of the following attributes that I am going to read out to you. Statements Satisfaction – [10 Point Scale] Keeping their brand promise – what KRA a) 1 2 3 4 5 6 7 8 9 10 DK promises its customers b) Accurate collection of taxes 1 2 3 4 5 6 7 8 9 10 DK c) Process of registration 1 2 3 4 5 6 7 8 9 10 DK d) Process of filing returns 1 2 3 4 5 6 7 8 9 10 DK Staff ability to answer customer queries and e) 1 2 3 4 5 6 7 8 9 10 DK questions The confidentiality given to customers while f) 1 2 3 4 5 6 7 8 9 10 DK handling sensitive matters g) Timeliness in service delivery 1 2 3 4 5 6 7 8 9 10 DK h) Frequency of communication 1 2 3 4 5 6 7 8 9 10 DK i) Staff being accessible through emails and phones 1 2 3 4 5 6 7 8 9 10 DK j) Decentralization of operations to the county level 1 2 3 4 5 6 7 8 9 10 DK k) Taxpayer education programs 1 2 3 4 5 6 7 8 9 10 DK l) Fast response to enquiries and complaints 1 2 3 4 5 6 7 8 9 10 DK m) Modes and channels of communication used 1 2 3 4 5 6 7 8 9 10 DK Participation in corporate social responsibility n) 1 2 3 4 5 6 7 8 9 10 DK activities
Q6b) Taking everything into consideration, how satisfied would you say you are with the services that you have received from KRA? Please use a scale of 1 – 5 where 5 = Very Satisfied; 4 = Satisfied; 3 = Neither Satisfied nor Dissatisfied; 2 = Dissatisfied and 1 = Very Dissatisfied. Very Satisfied Satisfied Neither Satisfied nor Dissatisfied Very Dissatisfied Dissatisfied 05 04 03 02 01
Q7a) When did you last contact KRA? Within the last 2 weeks 01 Within the last month 02 Between 2 and 6 months 03 Between 7 months and 1 year 04 Over 1 year ago 05 Have never made contact 06 If no contact, go to Q9a
Q7b) What was the reason for the contact?
Q7c) Did you receive any feedback on your query? Yes 01 No 02
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Q7d) How did you contact them? Telephone 01 Email 02 Website 03 Visited their offices 04 Letter 05 Fax 06 Other – please specify:
Q7e) How long did it take for you to receive feedback from KRA? In less than 24 hours 01 Within a week 02 Within 2 weeks 03 Within 3 weeks 04 Over 3 weeks: please specify how long it took for you to receive feedback from KRA
Q7f) Thinking about this last time that you made a contact with KRA; how satisfied would you say you were with the contact made? Not satisfied at all 01 Dissatisfied 02 Neither satisfied nor dissatisfied 03 Satisfied 04 Extremely satisfied 05
Q8a) CONTACT CENTRE: Do you know which number to use when you want to contact KRA’s Contact Centre? Yes 01 If yes, continue to Q9b No 02 If no, please go to Q10a
Q8b) Please rate the effectiveness of KRA’s Contact Centre using a scale of 1 – 5 where 1 = very ineffective; 2 = somewhat ineffective; 3= neither effective nor ineffective; 4 = somewhat effective and 5 = very effective. Very ineffective Somewhat Neither effective Somewhat Very effective ineffective nor ineffective effective 01 02 03 04 05
Q9a) WEBSITE: Are you aware that KRA has a website? Yes 01 If yes, please continue to Q7b No 02 If no, skip to Q8a
Q9b) How often do you visit KRA’s website? Daily 01 Weekly 02 Monthly 03 On a need basis 04 Other – please specify
Q9c) what do you do when you visit KRA’s website? Tax payments 01 Seek information 02 Download forms 03 Checking updates 04 Others ______70 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Q9d) please tell me how KRA can improve on their website
Q10a) HUDUMA CENTRE: Have you ever visited any Huduma Centre? Yes 01 If yes, please continue to Q8b No 02 If no, skip to Q10a
Q10b) How often do you visit Huduma center? Daily 01 Weekly 02 Monthly 03 On a need basis 04 Other – please specify
Q10c) what do you do when you visit Huduma center? Tax payments 01 Seek information 02 Registration 03 Others 04
Q10) please tell me how KRA can improve services at Huduma Centre
KRA’s SYSTEMS Q11a) Which of the following KRA systems are you aware of? Read list (Circle all that apply) Q11b) Of these systems that you are aware of, which ones does your organization use? (Circle all that apply) Q11c) Using a scale of 1 to 5 where 5 = Very Satisfied; 4 = Satisfied; 3 = Neither Satisfied nor Dissatisfied; 2 = Dissatisfied and 1 = Very Dissatisfied, please tell me how satisfied you are with the system/s that your organization uses.
Q11a Q11b Q11c Satisfaction Awarenes Usage s Very Very Dissatis SYSTEMS Satisfied Neither Dissatisfi Satisfied fied ed Simba System 01 02 05 04 03 02 01 Integrated Tax Management 01 05 04 03 02 01 02 System (ITMS) / i-tax Electronic Cargo System 01 02 05 04 03 02 01 Common Cash Receipting 01 05 04 03 02 01 02 System PIN Checker 01 02 05 04 03 02 01 Tax Compliance Certificate 01 05 04 03 02 01 02 Checker Customs Oil stock Information 01 05 04 03 02 01 02 System Manifest management system 01 02 05 04 03 02 01 Flow meters for Excise 01 05 04 03 02 01 02 registered firms Others – specify: 05 04 03 02 01
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Q11(d) Why do you say so
Reasons for satisfaction rating in Q11c above
Simba System
Integrated Tax Management System (ITMS) / i-tax Electronic Cargo System
Common Cash Receipting System
PIN Checker
Tax Compliance Certificate Checker
Customs Oil stock Information System Manifest management system
Flow meters for Excise registered firms
Other – please specify
Q12) I am now going to read out some statements about KRA. Please tell me to what extent you agree with them. Use a 5 point scale, whereby 1 means you “Strongly Disagree”, 2 means you “disagree”, 3 means you “Neither Agree nor Disagree”, 4 means you “agree” and 5 means you ‘Strongly Agree” with the statement. Please ensure you rate each statement.
Strongly Disagree Neither Agree Strongly Disagree Agree Agree Nor Disagree CUSTOMER CARE / STAFF RELATIONS KRA staff are knowledgeable 01 02 03 04 05 KRA staff are professional 01 02 03 04 05 KRA staff strive to exceed customers’ 01 02 03 04 05 expectations KRA staff respond to customers’ queries and problems promptly SUPPORT KRA is committed to supporting my company’s 01 02 03 04 05 long term growth KRA audits causes inconveniences and 01 02 03 04 05 disruptions to taxpayers and their business programs KRA ensures prompt payments of money owed to 01 02 03 04 05 taxpayers
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INTEGRITY AND FAIRNESS KRA employees/officials are of high integrity 01 02 03 04 05 KRA officials or employees discharge their duties in 01 02 03 04 05 a fair and impartial manner KRA officials or employees expect to receive bribes 01 02 03 04 05 or entertainment in order to serve customers efficiently Given your experiences with KRA officials or 01 02 03 04 05 employees over the past two years, do you agree that they actually take bribes (cash, gifts, favors etc)? KRA upholds integrity and accountability in all its 01 02 03 04 05 undertakings TAXPAYER EDUCATION KRA conducts tax payer education programs for 01 02 03 04 05 individuals that covers basic information in respect to all taxes KRA issues simplified publications that contain 01 02 03 04 05 information on all taxes administered by KRA
Q13) Which of the following statements best describes your impression of communications within KRA? KRA keeps customers fully informed 05 KRA keeps customers fairly well informed 04 KRA keeps customers adequately informed 03 KRA gives customers only a limited amount of information 02 KRA doesn’t tell customers much at all about what is happening 01
Q14a) PROBLEM RESOLUTION / COMPLAINT HANDLING: Have you experienced any problems with KRA or have you made any form of complaint on behalf of your organization to KRA in the last 1 year? Yes 01 If yes, please continue to Q14b No 02 If no, skip to Q15a
Q14b) What was the problem / complaint about?
Q14c) Did you report the problem or complaint to KRA? Yes 01 If yes, please continue to Q14e No 02 If no, skip to Q14d
Q14d) If no, why did you not report it to KRA?
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Q14e) Through which mechanism / channel did you make the complaint / report the problem? Telephone 01 Email 02 Website 03 Visited their offices 04 Postal mail 05 Fax 06 Suggestion box 07 Other – please specify:
Q14f) How fast was your complaint / problem solved? In less than 24 hours 01 Within a week 02 Within 2 weeks 03 Within 3 weeks 04 Over 3 weeks: please specify how long it took
Q14g) Thinking about this last time that you made a complaint to KRA; how satisfied were you with the way your complaint/ problem was resolved? Not satisfied at all 01 Dissatisfied 02 Neither satisfied nor dissatisfied 03 Satisfied 04 Extremely satisfied 05
Q14h) Why do you say so? PROBE
Q14i). On a scale of 0-10, where Zero means would not recommend at all and 10 means, very likely, what is the likelihood of you recommending KRA to a friend?
Detractors Neutral Promoters 0 1 2 3 4 5 6 7 8 9 10
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Appendix 1. TAXPAYERS –Organization
INTRODUCTION Good morning/afternoon. My name is……………………………………from a research company called SBO Research Ltd, an independent market research agency We are conducting a customer satisfaction survey on behalf of the Kenya Revenue Authority (KRA). KRA would Like to know what their customers think about their services in order to ensure high levels of customer satisfaction. The information you provide will remain confidential and the results will be analyzed and reported collectively.May I ask you a few questions? SECTION I: MAIN INTERVIEW
PART A: CUSTOMER SATISFACTION ASSESSMENT
Q1a) Have you noticed any changes at KRA in the last 3 years? Please tick /circle Yes 01 If yes, please continue to Q1b No 02 If no, skip to Q2a
Q1c) If so, what changes have you noticed?
(Q1b) Which of the following tax obligations relates to you? Process of payments 01 Processing of refunds 02 VAT 03 Excise duty 04 Corporation income 05 PAYE 06 Withholding tax 07 Others (specify)
Q2a) Are you aware that KRA has a customer service charter? Yes 01 If yes, please continue to Q2b No 05 If no, skip to Q3
Q2b) How did you get to know about KRA’s customer service charter? Newspaper 01 Radio 02 TV 03 KRA’s website 04 Posters within KRA’s buildings 05 Exhibitions and promotions e.g. shows 06 Events held by KRA e.g. launch events, taxpayers’ week 07 Employees of KRA 08 Others – please specify;
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Q2c) On a scale of 1 to 5 where 1 = very ineffective; 2 = somewhat ineffective; 3= neither effective nor ineffective; 4 = somewhat effective and 5 = very effective, how would you rate the effectiveness of KRA’s customer service charter? Very ineffective Somewhat Neutral Somewhat Very effective ineffective effective 01 02 03 04 05
Q3a) Are you aware of any reforms that are currently being undertaken or have been undertaken by KRA? Yes 01 If yes, please continue to Q4b No 06 If no, skip to Q5
Q3b) What are these reforms that you are aware of? Any other? Don’t prompt Processing of VAT 01 I Tax systems 02 Mobile payment systems 03 SMS gateway solution 04 Establishment of Huduma centres 05 Website upgrade 06 Established call centers 07 Others (specify)
Q4) SATISFACTION: For this section, I want you to tell me the extent to which you are satisfied with KRA on each of the following attributes that I am going to read out to you. Please use a scale of 1 to 5 where 5 = Very Satisfied; 4 = Satisfied; 3 = Neither Satisfied nor Dissatisfied; 2 = Dissatisfied and 1 = Very Dissatisfied.
Neither Very Very Satisfied Satisfied nor Dissatisfied Satisfied Dissatisfied Dissatisfied
a) KRA keeping their brand 05 04 03 02 01 promise – what KRA promises its customers b) Accurate collection of 05 04 03 02 01 taxes c) Process of registration 05 04 03 02 01 d) Payment of taxes e) Process of filing returns 05 04 03 02 01 f) The confidentiality given 05 04 03 02 01 to customers while handling sensitive matters g) Efficient and speedy 05 04 03 02 01 service delivery h) Frequency of 05 04 03 02 01 communication i) Staff being accessible 05 04 03 02 01 through emails and phones j) Decentralization of 05 04 03 02 01 operations to the county level ______76 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
k) Taxpayer education 05 04 03 02 01 programs l) Fast response to 05 04 03 02 01 enquiries and complaints m) Modes and channels of 05 04 03 02 01 communication used n) Timeliness in delivery of 05 04 03 02 01 services o) Staff ability to answer 05 04 03 02 01 customer queries and questions
Q5a) When did you last contact KRA on behalf of your organization? Within the last 2 weeks 01 Within the last month 02 Between 2 and 6 months 03 Between 7 months and 1 year 04 Over 1 year ago 05
Q5b) How did you contact them? One mention only Telephone 01 Email 02 Website 03 Visited their offices 04 Letter 05 Fax 06 Other – please specify:
Q5c) What was the reason for the contact?
Q5d) Did you receive any feedback on your query? Yes 01 If yes, continue to Q7e No 02 If no, please go to Q7f
Q5e) How long did it take for you to receive feedback from KRA? In less than 24 hours 01 Within a week 02 Within 2 weeks 03 Within 3 weeks 04 Over 3 weeks: please specify how long it took for you to receive feedback from KRA
Q5f) Thinking about this last time that you made a contact with KRA; how satisfied would you say you were with the contact made? Not satisfied at all 01 Dissatisfied 02 Neither satisfied nor dissatisfied 03 Satisfied 04 Extremely satisfied 05
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Q6a) CONTACT CENTRE: Do you know which number to use when you want to contact KRA’s Contact Centre? Yes 01 If yes, continue to Q8b No 02 If no, please go to Q9a
Q6b) Please rate the effectiveness of KRA’s Contact Centre using a scale of 1 – 5 where 1 = very ineffective; 2 = somewhat ineffective; 3= neither effective nor ineffective; 4 = somewhat effective and 5 = very effective. Very ineffective Somewhat Neither effective Somewhat Very effective ineffective nor ineffective effective 01 02 03 04 05
Q7a) WEBSITE: Are you aware that KRA has a website? Yes 01 If yes, please continue to Q7b No 02 If no, skip to Q8a
Q7b) How often do you visit KRA’s website? Daily 01 Weekly 02 Monthly 03 On a need basis 04 Other – please specify
Q7c) what do you do when you visit KRA’s website? Tax payments 01 Seek information 02 Download forms 03 Checking updates 04 Others
Q7d) please tell me how KRA can improve on their website
Q8a) HUDUMA CENTRE: Have you ever visited any Huduma Centre? Yes 01 If yes, please continue to Q8b No 02 If no, skip to Q10a
Q8b) How often do you visit Huduma center? Daily 01 Weekly 02 Monthly 03 On a need basis 04 Other – please specify
Q8c) what do you do when you visit Huduma center? Tax payments 01 Seek information 02 Registration 03 Others 04
Q9) please tell me how KRA can improve services at Huduma Centre
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Tax payment – through mpesa KRA’s SYSTEMS Q10a) Which of the following KRA systems are you aware of? Read list (Circle all that apply) Q10b) Of these systems that you are aware of, which ones does your organization use? (Circle all that apply) Q10c) Using a scale of 1 to 5 where 5 = Very Satisfied; 4 = Satisfied; 3 = Neither Satisfied nor Dissatisfied; 2 = Dissatisfied and 1 = Very Dissatisfied, please tell me how satisfied you are with the system/s that your organization uses
Q10a Q10b Q10c Satisfaction Awareness Usage Very Not Very SYSTEMS Satisfied Dissatisfied Satisfied sure Dissatisfied Simba System/ 01 01 05 04 03 02 01 iCMS iTax 02 02 05 04 03 02 01 Electronic Cargo 03 03 05 04 03 02 01 Tracking System/regional electronic cargo tracking system Common Cash 04 04 05 04 03 02 01 Receipting System PIN Checker 05 05 05 04 03 02 01 Tax Compliance 06 06 05 04 03 02 01 Certificate Checker Customs Oil stock 07 07 05 04 03 02 01 Information System Manifest 08 08 05 04 03 02 01 management system Flow meters for 09 09 05 04 03 02 01 Excise registered firms Others – specify: 05 04 03 02 01
Q11) I am now going to read out some statements about KRA. Please tell me to what extent you agree with them. Use a 5 point scale, whereby 1 means you “Strongly Disagree”, 2 means you “disagree”, 3 means you “Neither Agree nor Disagree”, 4 means you “agree” and 5 means you ‘Strongly Agree” with the statement. Please ensure you rate each statement. Strongly Disagree Neither Agree Strongly Disagree Agree Agree Nor Disagree CUSTOMER CARE / STAFF RELATIONS KRA staff are knowledgeable 01 02 03 04 05 KRA staff are professional 01 02 03 04 05 KRA staff strive to exceed customers’ 01 02 03 04 05 expectations KRA staff respond to customers’ queries and 01 02 03 04 05 problems promptly
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INTEGRITY AND FAIRNESS KRA employees/officials are of high integrity 01 02 03 04 05 KRA officials or employees discharge their duties in a 01 02 03 04 05 fair and impartial manner KRA officials or employees expect to receive bribes or 01 02 03 04 05 entertainment in order to serve customers efficiently Given your experiences with KRA officials or 01 02 03 04 05 employees over the past two years, do you agree that they actually take bribes (cash, gifts, favors etc.)? KRA officials upholds accountability in all their 01 02 03 04 05 undertakings TAXPAYER EDUCATION KRA conducts tax payer education programs for 01 02 03 04 05 businesses that covers basic information in respect to all taxes KRA issues simplified publications that contain 01 02 03 04 05 information on all taxes administered by KRA
Q12 Which of the following statements best describes your impression of communications within KRA? KRA keeps customers fully informed 05 KRA keeps customers fairly well informed 04 KRA keeps customers adequately informed 03 KRA gives customers only a limited amount of information 02 KRA doesn’t tell customers much at all about what is happening 01
Q13a) PROBLEM RESOLUTION / COMPLAINT HANDLING: Have you experienced any problems with KRA or have you made any form of complaint on behalf of your organization to KRA in the last 2 year? Yes 01 If yes, please continue to Q13b No 02 If no, skip to Q14a
Q13b) What was the problem / complaint about? Took too long to serve 01 The website was down 02 Wrong computation of income tax 03 Renewal/registration of Pin 04 Others (specify)
Q13c) Did you report the problem or complaint to KRA? Yes 01 If yes, please continue to Q13e No 02 If no, skip to Q13d
Q13d) If no, why did you not report it to KRA? I didn’t know who to to report to/I don’t know the procedure 01 They take too long to answer your query 02 Lack of time 03 Others (specify)
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Q13e) Through which mechanism / channel did you make the complaint / report the problem? Telephone 01 Email 02 Website 03 Visited their offices 04 Postal mail 05 Suggestion box 06 Social media 07 Other – please specify:
Q13f) How fast was your complaint / problem solved? In less than 24 hours 01 Within a week 02 Within 2 weeks 03 Within 3 weeks 04 Over 3 weeks: please specify how long it took
Q13g) Thinking about this last time that you made a complaint to KRA; how satisfied were you with the way your complaint/ problem was resolved? Not satisfied at all 01 Dissatisfied 02 Neither satisfied nor dissatisfied 03 Satisfied 04 Extremely satisfied 05
Q13h) Why do you say so? PROBE
Q13i). On a scale of 0-10, where Zero means would not recommend at all and 10 means, very likely, what is the likelihood of you recommending KRA to a friend?
Detractors Neutral Promoters 0 1 2 3 4 5 6 7 8 9 10
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SECTION II: PROFILE
P1. Name of respondent Optional
P2. Contact details of respondent
Optional
P3. Name of organization
P4. Category – FOR LARGE TAX PAYERS ONLY Top 25 sector 01 Agriculture and Wholesalers 02 Banks and Insurance 03 Domestic Excise 04 Food and other Manufacturers 05 Government and Construction 06 Oil, Transport Motor Vehicle, Services and 07 Hospitality
P5. Category – FOR MEDIUM, SMALL AND MICRO TAX PAYERS ONLY LTO’s 01 Medium (Employs 50 – 99 employees) 02 Small (Employs 10 – 49 employees) 03 Micro (Employs 1 -9 employees) 04 SECTOR Service 01 Agriculture and Manufacturing 02 ______82 Customer Satisfaction Survey For: Kenya Revenue Authority 2017-2018
Retail and Wholesalers 03 Insurance 04 Financial 05 Government and Construction 06
P6.Region / Location Nairobi 01 Central 02 Northern 03 South Rift 04 North Rift 05 Southern 06 Western 07
P7) COUNTY
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INDIVIDUAL CUSTOMERS DG LENGTH OF DICUSSION: 25 – 30 MINUTES INTRODUCTION AND WARM UP (2 mins) The interviewer introduces him/herself and explains the purpose of the exercise. The interviewer explains that the discussion is open, not an exam and there is no wrong or right answer. Explain that the information given by respondents is confidential. Encourage the respondents to give honest opinions. Explain the use of the recorder. Ask the respondent to introduce him/herself.
MAIN INTERVIEW GENERAL AWARENESS (3 mins) What is the first thing that comes to mind when I mention KRA? PROBE for meanings and associations What if anything do you like about KRA? What else? What if anything do you dislikes about KRA? What else? In your opinion, what is the role of KRA?
CUSTOMER SERVICE CHARTER/ SERVICE DELIVERY (7 mins) Are you aware that KRA has a customer service delivery charter? If so, how did you get to learn about it? PROBE for sources Do you know the various timelines set out in the service charter? If yes, please give me examples of some timelines. Has KRA lived up to the promises that they have set out in the charter? Why or Why not? In which areas has KRA fallen short of your expectations in their service delivery? (Weaknesses) PROBE In which areas has KRA exceeded your expectations in terms of service delivery? (Strengths) PROBE
PERCEPTION OF KRA ACROSS VARIUOS SERVICE ELEMENTS (7 mins) How do you perceive KRA in terms of; . Speed of their services . Responsiveness to customer needs and queries . Hours of operation . Staff efficiency . Embracing technology . Process of registration . Process of applying for PIN number, (process of paying fees etc – this apply for those who have done the services)
CUSTOMER EDUCATION PROGRAMMES (2 mins) Which customer education programs from KRA have you ever heard of? What is your opinion about these education programs?
CURRENT COMMUNICATION TO EXTERNAL CUSTOMERS (7 mins) Have you ever seen/ heard about KRA in the media? If yes which media? In which media did you hear/ see about KRA? In which media do you get to hear/see about KRA most often? if Radio or TV Probe for specific stations What was it about?
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What message was being passed about KRA? How often do you get to see/hear about KRA in the media? Do you feel that KRA is using the right media to communicate to the market? If no ask, which media should KRA use in order to get more exposure?
REFORMS (7 mins) Are you aware of any reforms that are currently being undertaken or have been undertaken by KRA? What are these reforms that you are aware of? (probe for huduma centres, website upgrade etc
BRAND PERSONIFICATION (3 mins) Supposing KRA was a person? What kind of a person would it be? PROBE FOR: Age, sex would that person be? What would be the physical appearance of that person? What would be their profession? Where would that person live? Where would they hang out? What would be their form of transport i.e. car, bicycle, Matatu or walk? If that person would own a car, what type of car would they drive? What would be their hobby? If you knew that person, would he/she be your friend? How close would your relationship be? Would KRA be the kind of person you would like to visit without notice or would you prefer notice? Why?
Do you have any other comment that you would like to make about KRA?
End of discussion. Thank the participants for their time and feedback.
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