A Dissertation Submitted in Fulfilment of the Requirement for Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University
Over the past decade most of the local government responsibilities were financed by the central governments but after the decentralization reforms which started being implemented in the year 2000. LGAs started to have responsibilities which were to be implemented through their own resources. Since the LGAs have been facing a number of challenges especially in implementing strategies to enhance revenues from service charges and fees, therefore the primary objective of this study was to show the challenges facing the LGAs in implementing strategies to enhance revenues from service charges and fees.
The study was conducted in Dar es Salaam applying the municipal council of Ilala as the study case involving the sample size of 149 respondents from different departments of the Ilala municipality. Both the qualitative and quantitative research approaches were applied in this study which provided the researcher with the room of using questionnaire, interview and documentation as the data collection tools of the study.
The findings from the study show that the municipal council of Ilala have been facing the organisational, institution, community, economic as well as well as the political challenges which in one way or the other have been hindering the process of revenue collection from the field. Since the study found that there is a gap existing between the LGAs' budgets and revenue collections, this study recommends that there is a need for more efforts to clear or minimize the gap in the LGAs' budgets and revenue collections. Also, this study recommends that there is a need of more or frequency training and workshops to train staff responsible for revenue collections such as on the significance of accountability and transparency in revenue collections. Also, the government should set enough budgets that will allow the responsible authority to improve the working environments as well as other facilities of the municipal council which have been affecting the process of revenue collection from the service charges and fees.