Factors affecting revenue collection at Lusaka city council.
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Date
2024
Authors
Chitalu, Getrude
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
Lusaka City Council (LCC) is critical in funding and delivering essential public services across Zambia's capital—however, LCC grapples with persistent underperformance in revenue collection. From 2018-2021, gaps between budgeted and actual revenues averaged over 20%, totalling K264 million in losses; this significantly constrains LCC's capacity to maintain infrastructure and services. This mixed-methods study investigated the factors underlying LCC's revenue challenges. Quantitative data was gathered by surveying 100 randomly sampled taxpayers and 30 purposively sampled council officers. Key metrics showed that 60% of taxpayers lacked awareness of tax rates and obligations, while 78% felt LCC does not engage
stakeholders when adjusting policies. Meanwhile, 91% of officers confirmed political interference in revenue collection, rating its impact 3.1/5. Taxpayers assessed the impact even higher, at 4.4/5. Qualitative data from interviews and focus groups highlighted issues like partisan appointments, opaque processes, and corruption. Thematically analysed responses emphasised outdated manual systems, corruption among collectors, weak enforcement and skill deficits as primary barriers. For instance, an officer noted that "lack of transport hampers bill delivery and follow-ups." Taxpayers cited inaccurate billing, unresolved discrepancies and poor customer service. This study makes a unique contribution by providing a comprehensive, contextualized analysis of the multi-faceted institutional, administrative and political factors constraining LCC's revenue performance. It offers new evidence from Zambia to inform local revenue mobilization policies tailored to the developing world. Key recommendations include
taxpayer education initiatives, integrated billing and payment systems, strengthened audits and oversight, and performance incentives balanced with sanctions to improve compliance. Sustained reforms to governance, administrative capacity, and engagement are indispensable to translating LCC's vast revenue potential into outcomes. The solutions offer subnational governments globally a model to enhance revenue mobilisation for local service delivery.
Description
Thesis of Master of Business Administration in Management Strategy.