Examining Revenue Collection in Local Authorities: A Case Study of Lusaka City Council

Abstract

This study analyzed the factors affecting revenue collection efficiency at Lusaka City Council, with a
particular focus on internal and external challenges, inadequate revenue collection, and the
effectiveness of current revenue collection strategies. The purpose of the research was to examine
how these variables influence fiscal performance and to propose strategic improvements for
enhancing local revenue generation. A mixed-methods research design was adopted, combining
quantitative data obtained through structured questionnaires with qualitative insights from semi
structured interviews conducted with council staff and key stakeholders. The quantitative data were
analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis, while
qualitative data were thematically analyzed to enrich the interpretation of statistical findings. The
results revealed that internal and external factors—such as political interference, outdated systems,
and a lack of skilled personnel—had a significant and negative impact on revenue collection
efficiency. Furthermore, inadequate revenue collection emerged as the most critical determinant of
inefficiency, with a nearly perfect negative correlation with efficiency indicators. Revenue collection
strategies were also found to be largely reactive and ineffective, further contributing to
inefficiencies. The regression model confirmed that the three independent variables collectively
explained 99.9% of the variance in revenue collection efficiency, indicating a very strong predictive
relationship. Qualitative findings corroborated these results, highlighting key barriers such as poor
technological infrastructure, limited enforcement of tax compliance, and procedural inefficiencies.
The study concluded that improving revenue collection efficiency required a multifaceted approach
involving the modernization of administrative systems, capacity building, increased
interdepartmental coordination, and the adoption of digital technologies such as mobile payment
platforms and automated billing systems. Based on these findings, the study recommended that
Lusaka City Council and similar local authorities implement comprehensive reforms focused on
enhancing institutional capacity, revising outdated revenue strategies, and fostering community
trust through improved service delivery. These interventions, if systematically applied, could
significantly enhance local revenue performance and support sustainable urban development.