Influence of Strategic Leadership on the Performance of the Kenya Revenue Authority

Influence of Strategic Leadership on the Performance of the Kenya Revenue Authority

^*Irene Nyakio Ng’ang’a., Gladys Kituku., Joshua Miluwi

School of Business and Economics, Kenya Methodist University

^*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8080218

Received: 06 August 2024; Accepted: 15 August 2024; Published: 13 September 2024

ABSTRACT

Strategic leadership is crucial in an organization as it fosters productivity, creativity, and employee engagement through effective decision-making, rewards, and incentives. However, a lack of strategic leadership can lead to inefficiencies and underperformance in revenue collection and management within certain institutions. This paper sought to examine the influence of strategic leadership on the performance of the Kenya Revenue Authority. The study applied a descriptive research design. The population for the study was 196 middle-level managers of the Kenya Revenue Authority. The study applied a stratified random sampling technique and the Slovin formula to obtain a representative sample size of 132 respondents. The study gathered data through questionnaires which were administered both physically and online. Data collected was analyzed through both descriptive and inferential analysis. Data collected was analyzed through both descriptive and inferential analysis. Results revealed a β of 0.656 and a p-value of 0.001, between strategic leadership and the performance of the Kenya Revenue Authority. The study concluded that strategic leadership had a positive and significant influence on the performance of the Kenya Revenue Authority. The study recommends that the Kenya Revenue Authority invest in continuous leadership development programs to enhance visionary and transformational leadership. Moreover, the study recommends maintaining and improving communication skills through regular training and workshops. Additionally, the study recommends implementing recognition and reward systems, promoting empowerment, and offering professional development opportunities to motivate employees. Lastly, the study recommends upholding and strengthening ethical practices through strict guidelines, ethics training, and transparent leadership.

Key Words: Strategic Leadership, Performance, Kenya Revenue Authority, Nairobi, County

INTRODUCTION

Many business professionals, including HR, operations managers, directors, legal advisors, executive leaders, and entrepreneurs, are increasingly channeling their efforts on the performance of their organizations. Effective organizations operate as well-oiled machines, where all parts integrate and align to produce the desired business outcome, control time wastage, and increase efficient resource utilization (Ali & Anwar, 2021). “Performance” entails the blend of actions used to perform a specific set of tasks and is measured regarding how successfully a person or a group performs such tasks (Al Aina & Atan, 2020). From a modern perspective, organizational performance is the engine used to measure and direct firms in realizing their goals. Therefore, organizational performance is mostly about organizational effectiveness, which is used to analyze how efficient an organization is in terms of meeting its objectives without putting unnecessary strain on its workforce.

Performance thrives when the organizational leadership is at its best. This is because leadership plays a paramount role in devising the team’s direction, setting strategies and effectively implementing those strategies to realize organizational goals, improve communication, align goals across the organization, develop employees and ensure optimum resource utilization (Hongal & Kinange, 2020). Therefore, organizational performance constitutes the actual organizational results as measured against the intended output, which is the goals and objectives. Organizational performance is broken down into three major operation terms: financial, operational and human capital performance. The financial performance focuses on the economic and market outcomes that include aspects like business profits, sales, ROI and other financial metrics. Next, the operational performance concentrates on the observable indices like social capital, customer satisfaction and loyalty, competitive edge and other measures associated with the organizational resources and capabilities. Lastly, human capital performance focuses on aspects like employee engagement, culture, and development opportunities, among other metrics.

Several factors affect organizational performance; these include external forces, internal factors, and individual choice factors. An organization have no control over the external factors, but these aspects affect its performance, structure and development. External factors include economic, socio-economic and political-administrative aspects (Lee et al., 2022). Internal elements affect organizations from within, including organizational purpose, mission, and values. The individual choice factors include the teams and individual decisions regarding expected costs and benefits. A business environment plays a critical role in ensuring organizational performance since it has mostly to do with a business’s success or failure (Gupta et al., 2020). Therefore, leaders are expected to continually focus on aligning their organization with the internal and external environment. However, about 70% of employees are usually misaligned with their organization’s strategic direction (Hirebook, 2024). Organizational performance is measured in different ways, the common ones being survival and growth, good alignment with the environment and relevancy (Hirebook, 2024). In another perspective, organizational performance can be seen at individual, team, departmental, and organization-wide performance levels.

As alluded to above, the performance of organizations is subject to various internal and external aspects. A critical internal factor affecting organizations is strategic leadership, which plays a critical role in propagating organizations towards realizing their goals and objectives. Strategic leadership entails the leader’s ability to establish a clear organizational vision and inspire their teams to achieve it (Ali & Anwar, 2021). Some leaders focus on daily and short-term operational issues, while strategic leaders concentrate on the big picture, such as where they desire their organization to be in the future and how best to utilize talent to reach there. Strategic leaders use creativity, problem-solving and strategic vision skills to guide their team members and the organization towards achieving long-term goals (Samimi et al., 2022). Strategic leaders are also good at efficient resource management, fostering innovation, nurturing talent and identifying and adapting to changing environments.

The Kenya Revenue Authority (KRA) is the Kenyan government agency responsible for tax collection and administration. It is undeniably a prime institution where strategic leadership can profoundly inspire better performance outcomes, such as meeting its revenue collection targets, enforcing maximum tax compliance and contributing to national development. More so, in the KRA context, strategic leadership can involve fostering integrity and accountability, setting clear revenue collection objectives, utilizing technology to streamline revenue collection operations, and maintaining flexibility. Other benefits of strategic leadership in the KRA content include nurturing a culture of continuous improvement, improving operational efficiency, promoting service delivery, realizing the agency mission and vision, and ensuring optimal technological and human capital utilization, among others.

Strategic leadership have been instrumental in enhancing the organizational performance of various economies and big corporations worldwide. Since its inception in 1976, Apple Inc. has managed to amass the house name synonymous with cutting-edge technology, invention and innovation. Its co-founder, Steve Jobs, is renowned for his visionary product development approach (Brimco, 2023). Apple has consistently been a good example of strategies surrounding product diversification, ecosystem integration, retail strategy, supply chain mastery and brand name, making it have a commendable market share amid the stiff competition. This is a true strategic leadership aspect manifested by the significance of establishing a clear vision, mission, customer experience, innovation and diversification.

Toyota is a global automotive company with an obvious strategic leadership exhibit. Its strategic management and leadership focus have made this company revolutionize the automotive manufacturing processes and introduce net operational efficiency standards. Toyota’s strategic leadership moves include lean manufacturing, global expansion, hybrid innovation technology, quality control and supply chain resilience (Brimco, 2024). Nike has also consistently utilized strategic leadership to maintain a competitive edge. Through its visionary leaders like Phil Knight, Nike showcases and commands a strong strategic innovation in the sportswear sector. Some notable Nike strategic moves include iconic branding, deals endorsement, footwear innovation, marketing campaigns and sustainability initiatives.

The African region also has multiple examples of successful strategic leadership in action. For instance, Rwanda, through the guidance of its President Paul Kagame, has, over time, managed to implement various strategic economic growth initiatives like infrastructural development and public services development. Such strategic moves have seen Rwanda record improved living standards for its people, notwithstanding a nasty past (Rwigema, 2022). Another example is the Dangote Group, Nigeria, led by its strategic leaders like Dangote. This company has been instrumental in expanding its operations across various sectors like cement, sugar and petroleum. Through effective strategic leadership exhibited by Dangote, the Dangote Group has managed to record significant business growth and stamp a regional market dominance (Boma-Orawari et al., 2024). Another example of successful strategic leadership in Africa is South Africa, where companies like Sasol have embraced strategic leadership practices to manoeuvre dynamic market challenges.

Strategic leadership has also been important in the Kenyan economy. Safaricom, the leading Kenyan telecommunication company, illustrated how strategic leadership can be essential to inspiring organizational success. Over time, Safaricom leadership have concentrated on rolling out innovative products and services to improve customer experience. Products like M-Pesa are the results of strategic leadership in this company and have assisted it in transforming and becoming the leader in the Kenyan financial landscape and beyond. Under the strategic leadership of Dr James Mwangi, Equity Bank Kenya has been instrumental in emphasizing and inventing financial inclusion and customer-centric products and services through its innovative products and services. Through such approaches, Equity Bank has gained huge customer banks and amassed a significant market share and associated financial performance. Through effective utilization of strategic leadership, the KRA can realize optimal organizational performance characterized by high revenue collection, high tax compliance, minimal tax evasions, effective administrative efficiency and clear performance targets. It could also be in a better position to leverage technology for effective operations, integrate employees into its agendas and nurture a culture of accountability (Ali & Anwar, 2021). Effective strategic leadership at KRA could involve setting clear and feasible performance targets, which effectively align with the organizational and national objectives and development goals (Samimi et al., 2022). With such a situation, the KRA will better assist the Kenyan government in increasing revenue, which is necessary for providing better public amenities and infrastructural development. In other words, by KRA adopting effective strategic leadership, it will be in a better position to foster a culture of excellent operational efficiency, continuous improvement, improved service delivery and promoted overall performance.

Aware of such benefits, the KRA has made significant strides in rolling out strategic initiatives in its processes focused on improving performance. For example, the KRA has recently implemented the iTax system to allow improved tax filing processes, increase compliance rates, and improve revenue collection. It also recently employed 2,000 workers to assist in enforcing tax collection countrywide. There are also concerted efforts at KRA regarding capacity building and employee development to improve service delivery. However, despite such strategic leadership efforts, the KRA continue to face significant organizational challenges, hindering its overall performance. There are rampant cases of tax evasion, corruption, service disruptions, and administrative inefficiencies. At least 8 in 10 Kenyan companies failed to obey their tax obligation duties in FY2022/2023 (Business Daily, 2023). In this year, statistics obtained from the KRA indicated that only about 129,313 out of about 862,336 corporate income tax (CIT) registered companies in Kenya were tax compliant, indicating a compliance rate of approximately 15% (Business Daily, 2023). These tax incompliance issues need to be considered in the face of increasing government budget proposals.

Several studies about KRA performance exist. However, most of these studies reveal a notable gap regarding the understanding of the impact of strategic leadership on the KRA performance. For instance, a study by Gatama and Kavindah (2022) mainly concentrated on strategic capabilities and technological innovation’s impact on the KRA’s efficiency; it failed to address the role of leadership. Awitta (2010) and Cheruiyot (2018) performed a study on revenue collection and financial management within the KRA. These authors failed to investigate the strategic leadership aspect. Furthermore, a report by the African Tax and Customs Review (2020) written by Juma and others (2020) on the Kenyan public sector performance emphasized administrative inefficiencies and did not offer insights into leadership practices. Other studies about KRA performance focused on technological and operational factors, and notably, limited attention was paid to leadership. This current study intends to fill the contextual, conceptual, methodological and geographical gaps notable in the previous studies by asking the research question: What is the influence of strategic leadership on the performance of the KRA performance.

LITERATURE REVIEW AND THEORY

Transformational Leadership Theory

The idea behind transformational leadership first emerged with James V. Downton in 1973. The concept was advanced in 1978 by James Burns. In 1985, researcher Benard M. Mass further advanced the concept where he included various ways to measure transformational leadership success (Ghasabeh et al., 2015). Bass’ transformational leadership model traces its origin to the 1970s but it remains an effective leadership theory practiced today. Unique to this model is that it is undeniably authentic and rarely changes apart from the environment it is applied (Korejan & Shahbazi, 2016). More so, transformational leadership theory is effectively applicable across virtually all industries, although it is mostly paramount in a fast-evolving technological sector where innovation and agility can significantly make or break an organization.

Transformational leadership is a leadership approach or style that mainly focuses on encouraging, inspiring and motivating staff to innovate and bring change essential for shaping and realizing the organization’s future success. Implementing this leadership style in the organization entails emphasizing setting a good example at the executive level by nurturing and cherishing a sense of authenticity and corporate culture (Ghasabeh, et al., 2015). It also involves reinforcing employee ownership, inspiring and motivating them to perform in ways that bring about meaningful change.

As Bass argues, transformational leadership have four key elements. The first aspect is idealized influence or charisma. This aspect describes charismatic leaders who are curious, exemplary role models, respected and trusted by all. Charismatic leaders can rally their subjects around a shared vision (Siangchokyoo, et al., 2020). The next aspect is inspirational motivation, which describes leaders who commit to a vision, are highly motivating and constantly inspire their followers to commit to organizational vision by instilling team spirit and promoting a sense of purpose. The third aspect is intellectual stimulation, which describes leaders having a high ability to motivate their team members to be innovative, critical thinkers and problem solvers, which are prerequisites for overall organizational improvement (Korejan & Shahbazi, 2016). The fourth aspect is individual consideration, which is the degree to which leaders attend to individual followers’ personal needs. In other words, transformational leaders must recognize and value individual aspects as key agents for overall organizational success.

In examining the influence of strategic leadership on the performance of the KRA, Transformational leadership theory offers a valuable lens. Strategic leadership within the KRA is a critical aspect necessary for driving this agency toward realizing its mission, vision and objectives. Strategic leadership in KRA is essential to assist this institution in maneuvering tax administration challenges, enforcing revenue collection, increasing tax obligation compliance and improving efficiency, among other aspects necessary for overall organizational performance. To achieve this, transformational leadership will allow employees to observe organizational commitment, develop problem-solving and innovation skills, focus on the desired vision and strategic direction, and enjoy more personal development and mentorship.

Empirical Literature

Visionary and Transformational Leadership and Organizational Success

Nuel et al. (2021) investigated the degree to which transformational and visionary leadership aspects impact organizational performance in higher learning institutions. The authors limited their study to Anambra State, Southeast Nigeria. Key study results indicated that visionary leadership dimensions positively correlate with improved organizational performance, hence effective leadership is paramount in business success and can cause desired changes in organizations. Therefore, the study recommended that management at all organizational levels must observe proper self-development plans and create teamwork and collaboration to ensure high employee optimism and performance. While this study provides critical insights regarding the topic, it manifests some research limits regarding geographical and sectoral limitations and longitudinal impact. The research mainly focused on higher learning institutions and within a specific region, more study is needed to understand the role of transformational leadership across versatile sectors. The research was also cross-sectional, communicating the need for additional research approaches like longitudinal study to have a better grasp of the long-lasting impact of transformational leadership on the organization’s performance.

A related study by Al-Amri et al. (2021) investigated the association between transformational leadership approach and organizational performance. The mediating factors and variables for this study were readiness to change and instilling knowledge-sharing quality. The key study results pointed to the need for transformation leaders to be research-focused and have a clear understanding of intrinsic differences in employee character. Such focus is necessary for encouraging better organizational performance via supporting quality knowledge-sharing and dissemination mechanisms and continuous training activities.

Le & Le (2021) conducted an empirical research study to investigate the impact of change capability as the mediating aspect in the context of transformational leadership and organizational performance. The study results revealed that transformational leadership is a critical success factor for innovation and employee productivity. It was also noted that innovation is positively correlated with organizational performance. The results further emphasized the need for a having a significant mediation between the role of innovation in transformational leadership and organizational performance. More so, there is a need to have further sector-specific investigations to understand how change capability and transformational leadership style interreact across industries and sectors.

Aketch et al. (2017) conducted a study to understand the impact of transformational leadership style on the organizational performance of SMEs in the Ugandan context. Particularly, this research focused on detailing how transformational leadership dimensions of charismatic nature, intellectual stimulation temperament and individualized consideration impact the performance of the SMEs in Uganda. The study findings implied that firms need to concentrate more on nurturing charismatic leadership styles to improve performance realization. However, this study has a limited scope of variables and is also context-specific, limiting its study results generalization. The authors performed their research in the Ugandan hotel sector, hence the need to undertake further studies in other countries and settings like Kenya and in the specific organization.

Effective Communication and Organizational Performance

Musheke and Phiri (2021) performed quantitative research with the help of a survey method approach. They interviewed 88 employees to understand the impact that effective communication has on organizational performance. The authors used a questionnaire to understand elements impacting effective communication grounded on systems theory. The study results indicate that effective communication is a crucial element in any organization as it helps in establishing work environment collaboration, which has a direct influence on decision-making and organizational success. The study also identified various factors critical for effective communication, which include goals, attitudes and effective communication criteria. The study also emphasized that effective communication is essential in the work environment since it inspires employees toward increased productivity. The study also emphasizes that transparent and timely communication are prerequisites for improved employee engagement and job satisfaction. The shortcomings of this research include a constrained focus on how various communication channels impact various organizational performance factors. By using longitudinal data, the study would have a better long-term influence on communication approaches to organizational performance.

Haroon Malik (2018) performed a quantitative study with the help of structured questionnaires to examine the effect of organizational communication on performance. The study settings were on public and private universities and the respondents comprised 600 students and 120 instructors. The researchers used a sampling technique of proportionate stratified sampling to select the study interviewees. The study results indicate that effective communication is necessary for monitoring the member’s demeanor, nurturing motivation and offering a medium for expressing emotions and social desires. Overall, the study results indicated that in both private and public universities, organizational communication has a crucial impact on organizational performance. More so, it was noted that performance improves when the organizational communication system improves. Notable research gaps include a lack of exploration of cultural differences regarding communication effectiveness and limited analysis of external communication effects on organizational performance.

Okwuagwu and others (2017) performed mixed-method research by combining surveys and interviews to understand the impact that effective communication has on improving employee morale and performance. The survey was performed on selected commercial banks in Abia State, Nigeria. The researchers collected data from 80 respondents. Data was collected and analyzed using descriptive statistics, while three hypotheses were tested using SPSS to get Spearman rank correlation. The key results findings confirm a positive relationship between effective communication and organizational performance. In other words, effective communication promotes organizational performance, while communication breakdown means decreased performance. This happens because effective communications establish a mutual understanding between leaders and employees, which is essential for nurturing a genuine relationship among all business stakeholders. The study, therefore, recommends that all communications should be phrased in a simple language that is easy to understand by all. The study, however, should have considered technological developments in communications platforms and how they impact organizational effectiveness and performance.

Sadia et al. (2016) sought to study the relationship between effective organizational communication and workforce productivity, with the mediating factor being new dimensions of effective communication flow. The researchers used a quantitative study and collected data with the help of a survey. A total of 120 filled questionnaires were returned and analyzed. The authors tested data reliability and validity with the help of SPSS. The study results indicate that effective organizational communication is necessary for improving employee productivity and that good communication flow in the entire organization is essential for building trust and promoting performance. One notable limitation of this study is that it did not investigate the influence of effective communication on various management and employee levels. There was a gap regarding constrained informational communication network examinations within the organization.

Empowering and Motivating Others and Organizational Performance

A study by Khan et al. (2020) scrutinized the effect of transformational leadership on work performance, burnout and social loafing. The researchers developed a mediation framework to help them analyze how transformational leadership impacts employee performance outcomes via mediating the significance of job satisfaction empowerment and intrinsic motivation. They used a quantitative research design to collect data from 350 employees working in various companies in Pakistan. However, there are some notable research gaps, including contextual limitations and methodological gaps.

Contextually, Khan et al., (2020) research was performed in Pakistan, which means that the findings may not be generalizable to other organizational and cultural contexts like Kenya. The authors used a cross-sectional design, which limits the capability to draw causal inferences. That way, other designs, like longitudinal studies, are necessary to understand the causal association between transformational leadership and the study outcomes. All the same, key study findings revealed that transformational leadership is critical in improving employee performance. Executive leaders who nurture and cherish transformational qualities like empowering others, motivating others and intellectual stimulation are best positioned to improve their employee and organizational performance as a whole.

Vu (2020) conducted a literature review on workforce empowerment and empowering leadership. He noted that empowering and motivating others fosters workforce creativity, teamwork spirit and overall organizational effectiveness and performance. Companies also need to empower their leaders, which connotes power sharing and motivating employees for superior performance. The author performed an expensive literature review by gathering historical data and study findings from previous research to gather insights for his study topic.

Vu’s (2020) findings indicate that employee empowerment is essential for improved job satisfaction, organizational commitment, business growth, employee performance, and customer satisfaction. Several other studies revealed that leadership empowerment of employees has a positive influence on employee’s motivational empowerment. Nevertheless, most of the studies used in the literature review utilized a cross-sectional design approach, which potentially limits the understanding and appreciation of how employee and leadership empowerment practices affect long-term workforce development and performance.

DATA AND METHODS

This study utilized a descriptive research design to tackle essential queries, encompassing the who, what, how, and why aspects of the research problem. The choice of a descriptive research design allowed the researcher to conduct an inquiry without manipulating field-collected data facilitating both quantitative and qualitative analyses. The study targeted employees from the Kenya Revenue Authority as the unit of analysis with a total of 196 middle-level managers serving as the unit of observation. The study employed the stratified random sampling technique and the Slovin formula to obtain a representative sample size of 132.

N/ [1+N(e²)]=n………………………………………….………………………equation (i)

n= 196/ [1+ 196(0.05²)] =131.54 to the nearest whole number being 132 participants.

Data for the study was collected using questionnaires through close-ended questions and analyzed through descriptive analysis. Additionally, the study applied regression analysis to determine the influence of strategic leadership on the performance of the Kenya Revenue Authority.

Y=B0+B1+e …………………………………………………………..…………equation (ii).

Where Y was the performance of Kenya Revenue Authority, BO was the constant, B1 was the coefficient for strategic leadership and e was the error term.

FINDINGS AND DISCUSSIONS

Response Rate

The study fully administered a total of 132 questionnaires, out of which 117 were collected back having been filled representing an 88.64% response rate.

Descriptive Statistics

Descriptive statistics on Strategic Leadership

Table 1 revealed that respondents agreed that they have visionary and transformational leaders as shown by a mean of 3.95. Respondents also agreed that their leaders have communication skills as indicated by a mean of 4.26. Additionally, respondents agreed that their leaders empower and motivate employees as shown by a mean of 4.33. Lastly, respondents agreed that their leaders uphold ethical practices indicated by a mean of 4.46.

A study by Al-Amri et al. (2021) concurred with the findings of the study in an investigation of the association between transformational leadership approach and organizational performance. The key study results pointed to the need for transformation leaders to be research-focused and have a clear understanding of intrinsic differences in employee character.

Table 1: Descriptive Statistics on Strategic Leadership

Descriptive Statistics on the Performance of KRA

Table 1 revealed that their customers have expressed their satisfaction with their customers’ services as shown by a mean of 3.95. Moreover, respondents agreed that they have experienced an increase in the amount of taxes collected in the past three years indicated by a mean of 4.26. Besides, respondents agreed that their organization has increased the number of staff in the last six years shown by a mean of 4.33. Lastly, respondents agreed that personal identification number (PIN) holders have increased in the last seven years shown by a mean of 4.46.

Table 2: Descriptive Statistics on Performance

Inferential Statistics

Regression Analyses

Table 3 revealed that 33.9% of the variations in the performance of the Kenya Revenue Authority were explained by strategic leadership, as indicated by an r-square value of 0.339.

Table 3: Model Summary

1. Predictors: (Constant), Strategic Leadership

Table 4 revealed an F-statistics value of 58.915, along with a p-value of 0.001, indicating that the simple linear regression model used in the study was highly significant in predicting the performance of the Kenya Revenue Authority.

Table 4: ANOVA

1. Dependent Variable: Performance
2. Predictors: (Constant), Strategic Leadership

Further results from Table 5 revealed a beta coefficient of 1.429 and a p-value of 0.001 which indicates that the constant in the model was statistically significant in the prediction of the performance of the Kenya Revenue Authority. Moreover, results indicated a beta value of 0.656 and a p-value of 0.001 between strategic leadership and the performance of the Kenya Revenue Authority which implied that strategic leadership significantly influenced the performance of the Kenya Revenue Authority because the calculated p-value of 0.001 was less than the critically chosen value of 0.05 concurring with the study by Aketch et al. (2017) who conducted a study to understand the impact of transformational leadership style on the organizational performance of SMEs in the Ugandan context. Particularly, the research focused on detailing how transformational leadership dimensions of charismatic nature, intellectual stimulation temperament, and individualized consideration impact the performance of SMEs in Uganda. The study findings implied that firms need to concentrate more on nurturing charismatic leadership styles to improve performance realization.

Table 5: Regression Coefficients

1. Dependent Variable: Performance

CONCLUSIONS AND RECOMMENDATIONS

The study concluded that the Kenya Revenue Authority had visionary and transformational leaders. The study also concluded that Kenya Revenue Authority’s leaders had communication skills. Moreover, the study concluded that Kenya Revenue Authority’s leaders empowered and motivated employees. Moreover, the study concluded that Kenya Revenue Authority’s leaders upheld ethical practices. Lastly the study recommended that strategic leadership had a significant influence on the performance of the Kenya Revenue Authority.

The conclusions of the study are therefore in support of Transformational leadership theory which mainly focuses on encouraging, inspiring and motivating staff to innovate and bring change essential for shaping and realizing the organization’s future success. Implementing this theory entails emphasizing setting a good example at the executive level by nurturing and cherishing a sense of authenticity and corporate culture. It also involves reinforcing employee ownership, inspiring and motivating them to perform in ways that bring about meaningful change.

The study recommended that the Kenya Revenue Authority should invest in continuous leadership development programs to further enhance the visionary and transformational capabilities of their leaders. Additionally, the study recommends that the Kenya Revenue Authority should maintain and improve communication skills, regular training, and workshops focused on effective communication techniques. Besides, the study recommends that the Kenya Revenue Authority should implement recognition and reward systems, promote a culture of empowerment, and offer professional development opportunities to further empower and motivate employees. Finally, the study recommends that the Kenya Revenue Authority should uphold and strengthen ethical practices, continue enforcing strict ethical guidelines, provide ethics training, and ensure transparent and accountable leadership practices.

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