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The research sought to identify the extent of adoption and use of e-payment for revenue
collection Machakos Town Sub-county's SMEs. This was examined by looking at how
communication and information on e-payment reach the SMEs owners, finding out if
SMEs owners faces any communication barriers in the adoption and use of e-payment
of revenue, identifying challenges facing Machakos Town Sub-county government in
revenue collection from SMEs, establishing SMEs managers' user perception of epayment
of revenue system and highlighting the benefits of using e-payment of revenue
by Machakos Town sub-county SMEs and the county government. Rogers' Diffusion
of Innovations Theory, Castells' Network Society Theory, and Davis' Technology
Adoption Model are the key theories, the study was anchored on. Descriptive research
method explained the extent in adoption and use of e-payment of revenue by Machakos
Town Sub-county for its SMEs. The sample size of 389 SMEs was arrived at using
Yamane (1967) formula from the SMEs population of 15,120 that saw a response of
291 SMEs. The sample size for the Machakos Town Sub-county office was 10, where
six responded. The tools of collecting data were close-ended and open-ended
questionnaires, which provided quantitative and qualitative data respectively. Test and
re-test ensured reliability as calculated using Pearson's correlation coefficient formula,
while validity was through use of SMART objectives and variables as contained in the
questionnaires for data collection. Quantitative analysis was done through Microsoft
office Word and Excel data processor. Thus the MKS Town Sub-county Government
uses various IEC means to inform and communicate with SMEs owners, there are
various benefits of e-payment of revenue for both the MKS Town Sub-county
Government and the SMEs. However, there are challenges to which the researcher
recommends ways of addressing them to maximize benefits and attain close to 100 %
adoption and use of the e-payment system.

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