Influence of Revenue Collection Strategy on Financial Sustainability in Public Institutions in Rwanda: A Case of Rwanda Social Security Board (RSSB)

Liliane Mugumyabanga & Tarus Thomas
University of Kigali
Email: mugumilili@yahoo.fr

Abstract: This study examined the influence of revenue diversification on the financial sustainability of the Rwanda Social Security Board (RSSB). It sought to determine the effect of revenue diversification on the financial sustainability of RSSB in Rwanda. A descriptive and correlational research design was employed using a mixed-methods approach to assess how diversified revenue sources contribute to the institution’s financial sustainability. A total of 196 questionnaires were administered to selected respondents, of which 128 valid questionnaires were returned and analyzed, representing a response rate of 65.3%. Primary data were collected using structured questionnaires, while secondary data were obtained through document review. Descriptive statistics, Pearson correlation, and simple linear regression analyses were performed using SPSS Version 23. The findings revealed a strong and statistically significant positive relationship between revenue diversification and financial sustainability (r = 0.805, p < 0.001). The regression analysis further showed that revenue diversification significantly predicts financial sustainability (R² = 0.648), indicating that 64.8% of the variation in financial sustainability is explained by revenue diversification. The study concludes that revenue diversification is a key determinant of the financial sustainability of RSSB. Based on the findings, the study recommends that RSSB strengthen its revenue diversification strategies by expanding sustainable investment opportunities, enhancing the management of diversified revenuesources, and improving investment governance to ensure long-term financial sustainability.