The Impact of Outsourcing on Local Governments’ Revenue Collection Performance in Tanzania: Experience from selected Councils
This study focused on examining the impact of outsourcing on the performance of local government revenue collection in Tanzania. The objective was to examine the revenue collection contribution and irregularity (if any) in Kinondoni Municipal Council (KMC), Morogoro Municipal Council (MMC) and Dar es Salaam City Council (DCC) before and after introduction of outsourcing. The study adopted the case study research design and the method of data collection was documentary review. The major findings indicate that, despite introduction of outsourcing in revenue collection in the studied Councils, an increase in revenue has not been fully realised because the revenue has not been remitted by the contracted firms due to collusion between local government staff and the contracted firms which caused the dismal revenue collection in the studied Councils. The study concludes that there is a need for KMC, MMC and DCC to strengthen their capacity to design and enforce contracts, and monitor companies in revenue collection. The study recommends that local governments should comply with the Public Procurement Act No. 7 of 2011, so that tenders for revenue collection are awarded to the companies on merit basis in the studied Councils in order to increase revenues.