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Automation Activities, Capacity Building and Revenue Collection Performance at Kenya Revenue Authority
(Kenya School of Revenue Administration_Moi University, 2020) Nthenge, Miriam
The Kenya Revenue Authority has over the years failed to meet its revenue collection target. This has been associated with the systems that are still operating manually in the tax collection process. This study's general objective was to examine the role of automation activities and capacity building on revenue collection performance in the Kenya Revenue Authority. The specific objectives were: to examine the role of process automation on performance in revenue collection performance at KRA; to assess the role of capacity building on the collection of revenue at KRA; and to determine the moderating effect of capacity building on the relationship between Process automation and revenue collection performance. The research was guided by the theory of public expenditure, technological determinism, and social determinism. Explanatory research design was employed. A sample of 384 employees working in the department of Domestic Taxes and Customs and Border Control Department were selected using a systematic sampling technique from a target population of 4108 employees working in the two departments. Questionnaires were used to collect primary data. Descriptive and inferential statistics were employed in data analysis. Descriptive statistics included means and standard deviations to describe the characteristics of the variables. Inferential statistics included correlation and regression analysis, which tested the relationship between variables. The study adopted Hierarchical regression model. The findings indicate that process automation (β = .618, p = 0.000, R2.441, ΔR2.374) and capacity building (β = .374, p= 0.000, R2.540, ΔR2.099) significantly influence revenue collection performance. In addition, capacity building moderates the relationship between process automation and revenue collection performance (β= -.098, p = 0.034, R2.547, ΔR2.006). This information provides practical solutions on process automation to KRA management as results of the study have shown a positive notable effect of process automation on revenue collection performance and therefore the management should ensure that the systems are improved continuously so as to match with the current technological situation. The study also provides practical solutions on capacity building to KRA management, findings have shown a positive significant effect of capacity building on revenue collection performance and therefore the management should invest more in building the capacity of its staff. KRA policymakers should develop policies on training programs such as ITAX, ICMS, and EGMS to enhance employee performance and improve productivity.
Capital allowances and growth of listed manufacturing firms in Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Syuki, Winfred Makaa
Manufacturing in Kenya has been on the decline for a considerable period with its contribution to Gross Domestic Product stagnating at 10 % from the 1960’s. According to the Government of Kenya, the manufacturing sector has high, yet untapped potential to contribute to employment and Gross Domestic Product growth. Generally, the manufacturing sectors’ average growth percentage has continued to stagnate at three to four per cent over the years. The performance of the manufacturing sector is affected by several factors one of them been the high cost of doing business. Excessive taxation in the form of high tax rate, double and multiple taxations are some of the challenges facing manufacturing industries. To mitigate this challenge, the government has advanced various tax incentives to the manufacturing sector. However, despite the various tax incentives being made towards these firms, their effect on their performance had not been investigated. Hence, this study sought to fill this gap. Therefore, the main aim of this study was to assess tax incentives and their effect on the growth of selected manufacturing firms in Kenya. Specifically, the study sought to; examine the effect of capital allowance on growth of listed manufacturing firms in Kenya. The study employed longitudinal design to determine the effect of capital allowance tax incentive on performance of listed manufacturing firms in Kenya. The target population for the study was 13 manufacturing firms listed at the Nairobi Securities Exchange in Kenya during the years 2012 to 2018. The study adopted a census design since the entire population was considered. The study measured the entire target population and a census was carried out to systematically acquire and record information regarding secondary data on company boards for each of the thirteen listed firms. The study used secondary data sourced from the listed firms’ published annual reports and statistics. Secondary data was retrieved from manufacturing firms’ websites, Nairobi Securities Exchange websites, Capital Markets Authority Library and Kenyan Investors website. The study utilized both descriptive and inferential statistics using Standard statistical techniques including Pearson correlation coefficient and regression analysis was employed in the analysis. The study estimated a Panel Data Regression Model. All the analysis was done using the statistical package for social sciences (SPSS Version.24). Analysis of variance (ANOVA) will be used to establish if there is a statistical significance between the observed and expected values with the Pearson Chi-square giving the degree significance of the relations hence establishing the research questions. In multivariate analysis, multiple regression analysis models were used to determine the type of relationship that existed between independent and dependent variables. From the findings, the study found that there was a strong positive correlation between the listed manufacturing firms in Kenya and W&T. The study further reveals that there was a negative relationship between ID and IBD and growth of listed manufacturing firms in Kenya. Based on the study findings, the study concluded that, capital allowance incentives affected the growth of selected manufacturing firms in Kenya positively. The study also concluded that various tax incentives needed to be made sustainable in order to ensure consistency in the performance of the firms.
The Causal Effect Between Tax Revenue And Economic Growth In Kenya
(2021) Kimani, Francis Kamau
The rapid-sporadic growth in government expenditure in Kenya has triggered concerns among policy makers on the repercussion of such growth on tax collection and the effect on the long run economic growth. The study sought to explore the relationship between tax revenue and economic growth in Kenya. The specific objectives were to; establish the causal effect between PAYE, corporation tax, value added tax, and excise duty on economic growth in Kenya. The study was anchored on the dynamic theory of public spending, taxation, and debt, the benefit theory, ability to pay theory, Neo-classical theory of growth and endogenous growth theory. The causal research design was adopted in the study. The study used secondary data that was obtained from the Central Bank of Kenya and the Kenya National Bureau of Statistics for the period 1989 to 2019. Time series analysis technique was adopted to determine the relationship between tax revenue and economic growth. The findings revealed that independently (β=1.198204, P=0.0011) and jointly (β=21.81471, P=0.0416), PAYEE had a positive and significant relationship with economic growth. Results also indicated that independently ((β =1.180804, P=0.0008) and jointly (β=22.50137, P=0.0339), corporation tax had a positive and significant relationship with economic growth. Results further revealed that independently, value-added tax had a positive and significant relationship with economic growth in Kenya (β =2.823958, P=0.0011). In addition, the findings showed that independently, excise duty had a positive and significant relationship with economic growth in Kenya (β =2.423642, P=0.0040). The study concluded that tax revenue contributes significantly towards enhancing economic growth in Kenya. The study recommendation is that the government of Kenya should strengthen tax policies, which is likely to increase revenue collection. The study also recommends that the government of Kenya should make structural adjustments to value-added tax and excise duty related policies, to ensure that there is adequate collection of taxes from these channels since there are less inconvenient and burdensome to the taxpayer since they are incorporated on the price of commodities and are not paid in lump sum like direct taxes and the taxpayer may not feel the burden of the tax since the obligation to collect and remit is placed on third parties. Further, consumption taxes (VAT & Excise tax) have a wider tax base which is paramount in ensuring equitable distribution of the tax burden on the target population.
Challenges Facing Taxation of the Informal Sector in Kenya: Case Study of Nairobi County
(KESRA/JKUAT - Unpublished research project, 2018) Memu, Pamela Kitinga
The large number of potential taxpayers in the informal sector, and the difficulties of monitoring “hidden” entrepreneurs and small-scale firms, can give rise to serious revenue collection costs for tax authorities in developing countries. At the same time, the revenue potential of taxpayers in the informal sector is fairly modest, as their taxable incomes are usually quite low. According to a World Bank study in year 2006, Kenya’s informal sector constituted 98 percent of all businesses in the country, absorbed annually up to 50 per cent of new employment seekers and had an employment growth rate of 12-14 percent. In the endeavor to realize this goal, KRA faces several problems when dealing with the informal sector. Some of these problems include financial literacy level of the taxpayers, book keeping and capital requirements. Fischer tax compliance model provides a framework for understanding the influence of socio-economic and psychological components on taxpayer’s compliance decision. AS theory holds that the government deters tax evasion through a sanction arrangement and audits. A tax payer will decide to violate the fiscal laws and evade his or her tax obligations when he or she perceives that the cost of evading tax is too low, believing he or she does that he or she is unlikely to be detected or audited. The SMEs are prone to tax evasion as they face difficulties in complying with tax laws. They are expected to comply with strict deadlines, keep proper books of accounts. This kind of environment leads to tax evasion. The study adopted a census research design with a target population of 79. This study used primary data collection through questionnaires while Secondary data was collected from published materials containing the relevant information on revenue collected from the informal sector over a period of stipulated time. The study was analyzed by use of inferential statistics and descriptive statistics by use of SPSS version 24 and the multi regression model was adopted. Findings revealed that there is a strong positive correlation between the variables of the study as shown by the 69.4% while 48.1% of variations in the dependent variable can be explained by changes in the independent variables hence, the remaining 51.9% is representative of other factors not accounted for in the study. Findings reveal that problems like tax complexity; low tax morale, low tax compliance and shadow economy may all be reduced by increasing the level of taxpayers' (individuals') financial literacy. Findings also reveal that most micro-enterprises do not keep books of accounts that will allow them to extract useful accounting information due to lack of accounting knowledge. The study thus recommends that policy makers should introduce stringent measures with respect to tax penalties and fines on the informal sector firms and tax payers who violate and act as an obstacle in the administration of this tax.
Challenges Facing the Implementation of One Stop Border Posts by The Kenya Revenue Authority
(KESRA/JKUAT - Unpublished research project, 2018) Temba, Grace Lunyolo
Changing from two-control stops to a Joint Border Post, in full compliance with the regulatory requirements of the neighboring countries, will clearly improve and enhance intraregional trade in Africa. Nonetheless, despite the benefits accrued to it, the implementation of one stop border posts is facing numerous challenges. The purpose of this study was to investigate the challenges facing the implementation of one stop border posts by the Kenya Revenue Authority. The specific objectives were to determine the effect of infrastructural challenges, bureaucratic procurement procedures, organizational culture and human resource challenges affect the implementation of one stop border posts by the Kenya Revenue Authority. This study used a descriptive research design. The target population of this study was all the 120 staff working at the four one stop border posts: Busia border, Malaba border, Namanga border and Taveta/horiri border. The study will use 50% of the target population as the sample size. The study used stratified random sampling in the selection of the sample size. This study used both primary and secondary data. Secondary data was collected from the annual reports on the customers and control department in Kenya Revenue Authority. Primary data was collected by use semi-structured questionnaires. Qualitative data was collected analysed by use of thematic content analysis and the results were presented in a narrative form. Quantitative data was analyzed by use of both descriptive and inferential statistics by use of statistical package for social sciences (SPSS version 22). Descriptive statistics include frequency distribution, percentages, measures of central tendencies (mean) and measures of dispersion (standard deviation). The data was then presented in tables and graphs. Multivariate regression analysis was used to establish whether there is a relationship between the dependent and the independent variables. The study found that infrastructural challenges have a negative and significant effect on the implementation of one stop border posts by the KRA. The study also established that bureaucratic procurement procedures have a negative and significant effect on the implementation of one stop border posts by the KRA. Further the study found out that organizational culture has a positive and significant effect on the implementation of one stop border posts by the KRA. Furthermore, the results revealed that human resource challenges have a negative and significant effect on the implementation of the one stop border posts by the KRA. The study recommends that the management at the KRA should purchase more stand by generators, allocate more financial resources for the development of one stop border posts and adopt the use on modern or advanced technology so as to ensure successful implementation of one stop border posts. The study also recommends that the management at the KRA should improve on staffs as well as suppliers competencies through conducting regular seminars and offering of free tutorial training so as to improve on the staffs‘ competency skill thus improving on the implementation of one stop border posts by the KRA. In addition, the study recommends that the management at the KRA should change the working pattern among staffs and implement measures or policies that reduce long working hours among the employees. Moreover, the study recommends that the management should employee more competency staffs so as to enhance the implementation of one stop border posts. Further, the study recommends that the management at the KRA should solicit customer feedback, take stock of their resources, and practice schedule their resource so as to improve on the implementation of one stop border posts.
Challenges Facing Value Added Tax Refunds Payment Process by Kenya Revenue Authority
(KESRA/JKUAT - Unpublished research project, 2018) Mohamed, Fatuma Milgo
Delay in VAT refunds payment has led to businessmen and traders accuse KRA of being quick to collect tax, but slow in refunding. In recent past KRA has put in place several measures to ensure that VAT refunds are timely processed and paid. These include staff training, introduction of tax audit, information technology, compliance checks, legislation and compliance laws. These measures are geared towards accelerating VAT refund processes. However, this has not been the case, and majority of taxpayers have to wait for upto three years before receiving tax refunds. The objective of the study was to establish the perceived challenges facing Value Added Tax (VAT) refunds payment process by Kenya Revenue Authority with an aim of establishing administrative impediments facing the process. The study used both qualitative and quantitative research methods to collect and analyze data. Structured questionnaire was administered to collect primary data from a population of 200 employees of Kenya Revenue Authority in the Domestic Taxes Department, Refund section. Ethical consideration was adhered to when collecting data from respondents. The study found that the further improvements are required in the area of increasing VAT refund administration capacity with an aim of increasing timely refund application, processing and payment. The Tax Authority needs to pay attention to taxpayer education, VAT refund compliance and timely audits. Finally, there is the need to recruit more staff and embark on training of newly engaged staff.
Contribution of Excise Duty Reforms to Excise Duty Compliance by Kenya Revenue Authority
(KeSRA/Moi Unpublished Research Project, 2019-11) Nzioka, Peter Maingi
Contribution of Tax Incentives on Revenue Performance among Special Economic Zones Enterprises in Kenya
(KeSRA/Moi Unpublished Research Project, 2019-11) Korir, Goeffrey
Coordinated Border Management and Trade Facilitation at Namanga Border, Kenya
(KESRA/JKUAT, 2022) Ogutu, Catherine Mogere
The purpose of this study was to establish the effect of coordinated border management on trade facilitation in Kenya, focusing on Namanga one-stop border point. Specific objectives of the study included: to establish the effect of cooperation among border agencies, coordination between border agencies, border collaboration challenges between border agencies, coexistence among border agencies, and the effect of communication among border agencies on trade facilitation at the Namanga border point. New Trade Theory and Export Base Theory were used in the study. The study adopted causal research design and a target population of 94 staff of border control agencies at Namanga Border Point. Census was used to include all of them in the study where primary data was collected using a structured questionnaire and analyzed using descriptive (frequencies & percentages) and inferential (multiple linear regression) data analysis methods. The study’s key findings indicated that there were significant challenges on coordinated border management at the Namanga border point. The study recommended the government’s creation of a harmonized business environment, effective coordination mechanism, effective policy for enhanced interagency collaboration, appropriate border control agencies coexistence structures, and working communication mechanism for helping border control agencies to always work under a more professional and friendlier environment that is favourable to effective and efficient trade facilitation at the Namanga border point. The study was important for informing the government and other state agencies on how to improve trade facilitation through properly coordinated border management
Coordinated Border Management and trade facilitation at Namanga Border Post, Kenya
(KESRA/Moi University, 2021) Ondari, Catherine Moraa; Dr. Nekesa, Marion; Dr. Komen, Joyce
Trade facilitation at the Namanga border post is currently facing a number of challenges that result into delays of clearance of goods across the Kenya-Tanzania border. The situation often encourages increased smuggling of goods as traders try to use shortcuts to avoid government agencies’ bureaucracies that always cause losses to several businesses due to delayed movement of commodities across the border. All these challenges are associated with disjointed coordination of trading by different agencies involved. The purpose of this study was to establish the effect of coordinated border management on trade facilitation in Kenya, focusing on Namanga one-stop border point. Specific objectives of the study included: to establish the effect of cooperation among border agencies, coordination between border agencies, border collaboration challenges between border agencies, coexistence among border agencies, and the effect of communication among border agencies on trade facilitation at the Namanga border point. New Trade Theory and Export Base Theory were used in the study. The study adopted causal research design and a target population of 140 staff of border control agencies at Namanga Border Point. Census was used to include all of them in the study where primary data was collected using a structured questionnaire and analyzed using descriptive (frequencies & percentages) and inferential (multiple linear regression) data analysis methods. The study’s key findings indicated that a unit increase in cooperation among border agencies would lead to a 0.153 increase in Trade facilitation at Namanga Border Post (β1=0.153, p=0.008<0.05); a unit increase in for Coordination of border agencies would lead to a 0.246 increase in Trade facilitation at Namanga Border Post (β2=0.246, p=0.014<0.05); a unit increase in Collaboration between border agencies would lead to a 0.123 increase in Trade facilitation at Namanga Border Post (β3=0.123, p=0.03<0.05); a unit increase in Coexistence among border agencies would lead to a 0.232 increase in Trade facilitation at Namanga Border Post (β4=0.232, p=0.001<0.05); a unit increase in cooperation among border agencies would lead to a 0.331 increase in Trade facilitation at Namanga Border Post β5=0.331, p=0.000<0.05). The study concluded that coordinated border management has a significant effect on trade facilitation at Namanga border post. The study recommended that there is need for the government and other key stakeholders to adopt international standards and tools of trade, such as SAFE Framework of Standards and performance of Time Release Study (TRS), that will help the identify bottlenecks and the border and address them efficiently. The study suggested that a comparative study should be carried out on the effect of coordinated border management on trade facilitation in at least two border points. A study should also be conducted on how the government is addressing challenges of coordinated border management to improve trade facilitation
Coordinated Border Management and trade facilitation at Namanga Border Post, Kenya
(Kenya School of Revenue Administration_Moi University, 2021) Moraa, Ondari Catherine
Trade facilitation at the Namanga border post is currently facing a number of challenges that result in delays of the clearance of goods across the Kenya-Tanzania border. The situation often encourages increased smuggling of goods as traders try to use shortcuts to avoid government agencies’ bureaucracies that always cause losses to several businesses due to delayed movement of commodities across the border. All these challenges are associated with disjointed coordination of trading by different agencies involved. The purpose of this study was to establish the effect of coordinated border management on trade facilitation in Kenya, focusing on Namanga one-stop border point. Specific objectives of the study included: to establish the effect of cooperation among border agencies, coordination between border agencies, border collaboration challenges between border agencies, coexistence among border agencies, and the effect of communication among border agencies on trade facilitation at the Namanga border point. New Trade Theory and Export Base Theory were used in the study. The study adopted causal research design and a target population of 140 staff of border control agencies at Namanga Border Point. Census was used to include all of them in the study where primary data was collected using a structured questionnaire and analyzed using descriptive (frequencies & percentages) and inferential (multiple linear regression) data analysis methods. The study’s key findings indicated that a unit increase in cooperation among border agencies would lead to a 0.153 increase in Trade facilitation at Namanga Border Post (β1=0.153, p=0.008<0.05); a unit increase in for Coordination of border agencies would lead to a 0.246 increase in Trade facilitation at Namanga Border Post (β2=0.246, p=0.014<0.05); a unit increase in Collaboration between border agencies would lead to a 0.123 increase in Trade facilitation at Namanga Border Post (β3=0.123, p=0.03<0.05); a unit increase in Coexistence among border agencies would lead to a 0.232 increase in Trade facilitation at Namanga Border Post (β4=0.232, p=0.001<0.05); a unit increase in cooperation among border agencies would lead to a 0.331 increase in Trade facilitation at Namanga Border Post β5=0.331, p=0.000<0.05). The study concluded that coordinated border management has a significant effect on trade facilitation at Namanga border post. The study recommended that there is need for the government and other key stakeholders to adopt international standards and tools of trade, such as SAFE Framework of Standards and performance of Time Release Study (TRS), that will help the identify bottlenecks and the border and address them efficiently. The study suggested that a comparative study should be carried out on the effect of coordinated border management on trade facilitation in at least two border points. A study should also be conducted on how the government is addressing challenges of coordinated border management to improve trade facilitation.
Corporate Governance Practices and Tax Disclosure among Firms Listed at the Nairobi Securities Exchange, Kenya
(Unpublished Research Project, 2019) Kigo, Caroline Wambui
Customer-Focused Service on Tax Compliance in Kenya
(KESRA/JKUAT - Unpublished research project, 2022-09-01) MUTHURI, JANE
Kenya Revenue Authority is involved in revenue collection mainly from taxation of taxable persons in the economy. Small businesses are often involved in tax evasion practices deliberately or without knowledge. It is not an easy fete to convince the small and medium enterprises to comply with tax laws. It is for this reason that customer service is seen as a good strategy through which tax compliance among the Small and Medium Enterprises. This study had the general objective of assessing the sequel of customer service on tax compliance in Kenya. The study had three specific objectives: To find out the effect of tax payer training on tax compliance, customer care staff training and to examine how communication to customer strategy on tax compliance, a case of SMEs in Nairobi Central Business District. The study adopted a descriptive research design because it had the objective of establishing the relationship between the variables. The study had a target population of 1,500 Small and Medium Enterprises operating with the Nairobi Central District. A sample of 150 was selected through stratified sampling which acted as a representative of the entire population. The study used descriptive statistics in data analysis. The study has found out that the most enabling factor is customer communication, followed by customer care and the lowest influencing is taxpayer training. Further, the study has found there is a need to improve the customer service of KRA in order to foster voluntary tax compliance. The regression model has found out that 53.7 % of the variations of Turnover Taxes is explained by taxpayer training, customer care training and communication strategy. The study recommends that the KRA needs to establish a strategic customer care department in order to facilitate information dissemination which will foster tax compliance among the SMEs in Kenya. Tax training should be done regularly and the appropriate communication channels should be used.
Customs strategies in controlling smuggling of goods in Kenya
(KESRA/JKUAT - Unpublished research project, 2019) Odago, Oscar Okoth
The aim of this study was to determine the effectiveness of customs strategies in controlling smuggling of goods in Kenya. The study was guided by four specific objectives; effectiveness of physical border patrol, effectiveness of customs cooperation with other agencies, and effectiveness of one stop border post in controlling smuggling of goods in Kenya. The study was also guided by; routines activity theory, collaborative advantage theory, social impact theory and situational crime prevention theory. The study used a descriptive research design. The target population of this study was the customs staff at Namanga One Stop Border Post and Nairobi customs region. The study used stratified random sampling technique to determine a sample size of 214 respondents, which was 87.2% of the total 460 staff targeted. Simple random sampling was used to select respondents. The study employed a questionnaire to collect primary data. The questionnaire comprised of close-ended questions. The study generated qualitative data. Qualitative data was coded and entered into Statistical Packages for Social Scientists (SPSSVersion23) and analysed using descriptive statistics. Qualitative data was presented in form of tables. The study found that; Physical border patrol, Customs cooperation with other agencies and One stop border post as customs strategies had an effect in controlling smuggling of goods at Kenya borders. The study established that multiple agencies are required to work in harmony to complement the strategy since cooperation among agencies was found to be key for successful customs strategy. Physical border patrol, customs cooperation with other agencies and one stop border post explained 92.6% leaving 7.4% unexplained. The researcher concluded that there is need to evaluate other factors that contribute to success of customs strategy in controlling smuggling of goods at Kenya borders. The study recommended that all government agencies should adopt effective physical border patrols along the borders, and work in collaboration with other stakeholders such as communities living around border posts. The study sees border patrols would be effective through having informers stationed within given distances to cover wide areas. This would act as a better deterrence mechanism where they would also relay information to 24-hour surveillance centers. The informer approach would be more effective, especially along borders where customs is unable to deploy its officers on a 24-hour basis. Satisfactory levels of up to 85% would be achieved.
Customs strategies in controlling smuggling of goods in Kenya.
(KESRA/JKUAT - Unpublished research project, 2019) Odago, Oscar Okoth
The aim of this study was to determine the effectiveness of customs strategies in controlling smuggling of goods in Kenya. The study was guided by four specific objectives; effectiveness of physical border patrol, effectiveness of customs cooperation with other agencies, and effectiveness of one stop border post in controlling smuggling of goods in Kenya. The study was also guided by; routines activity theory, collaborative advantage theory, social impact theory and situational crime prevention theory. The study used a descriptive research design. The target population of this study was the customs staff at Namanga One Stop Border Post and Nairobi customs region. The study used stratified random sampling technique to determine a sample size of 214 respondents, which was 87.2% of the total 460 staff targeted. Simple random sampling was used to select respondents. The study employed a questionnaire to collect primary data. The questionnaire comprised of close-ended questions. The study generated qualitative data. Qualitative data was coded and entered into Statistical Packages for Social Scientists (SPSSVersion23) and analysed using descriptive statistics. Qualitative data was presented in form of tables. The study found that; Physical border patrol, Customs cooperation with other agencies and One stop border post as customs strategies had an effect in controlling smuggling of goods at Kenya borders. The study established that multiple agencies are required to work in harmony to complement the strategy since cooperation among agencies was found to be key for successful customs strategy. Physical border patrol, customs cooperation with other agencies and one stop border post explained 92.6% leaving 7.4% unexplained. The researcher concluded that there is need to evaluate other factors that contribute to success of customs strategy in controlling smuggling of goods at Kenya borders. The study recommended that all government agencies should adopt effective physical border patrols along the borders, and work in collaboration with other stakeholders such as communities living around border posts. The study sees border patrols would be effective through having informers stationed within given distances to cover wide areas. This would act as a better deterrence mechanism where they would also relay information to 24 hour surveillance centers. The informer approach would be more effective, especially along borders where customs is unable to deploy its officers on a 24 hour basis. Satisfactory levels of up to 85% would be achieved.
Determinants of alternative dispute resolution mechanism among medium taxapayers: a case study of medium taxpayers in Nakuru County, Kenya.
(KESRA/JKUAT - Unpublished research project, 2020) Kaluhi, Gladwell Jones
The study aims to investigate the Determinants of ADR mechanisms among medium taxpayers in Kenya. The specific objectives of the study included: to assess the influence of perceived benefits on the adoption of ADR mechanisms in tax administration in Kenya; to examine the influence of perceived ease of use on the adoption of ADR mechanism in tax management in Kenya and; to examine the influence of ADR knowledge and awareness on the adoption of ADR mechanism in tax management in Kenya. The study variables included perceived benefits, perceived ease of use and knowledge and awareness which are the independent variable of the study. The dependent variable is ADR mechanisms. The study employed descriptive research design and the target group was 1200 medium taxpayers registered by KRA, Nakuru County. Stratified sampling technique used to sample the population and the sample size comprised of 120 medium taxpayers. The study adopted primary data and research instruments were closed structured questionnaire Data analysis conducted using Statistical Packages for Social Sciences (SPSS) version 2017. The study analyzed data through descriptive and inferential statistic. The study found out that The coefficient for perceived benefits is -0.148, so we expect a -0.148 unit decrease in the adoption of ADR holding all other variables constant. The coefficient for perceived ease of use is 0.341 so for every unit increase in perceived ease of use, we expect 0.34 point increase in adoption of ADR. For knowledge and awareness, is represented by a coefficient of 0.298, meaning for every increase in perceived ease of use a 0.29-unit increase in adoption of ADR is predicted holding all other variables constant. The study recommended that The regulation on ADR in tax disputes given by KRA should be aimed at making ADR process less costly to ensure all the taxpayers and the KRA can benefit from it. The KRA should carry out intensive creation of awareness and sensitization so as to encourage the use of ADR to citizenry
Determinants of capital gains tax performance among property owners in Nakuru City, Kenya
(KeSRA_Moi University, 2023) Lesupeer, Mpukiyan Peter
Tax compliance remains to be a very crucial subject to researchers in many parts of the world across the globe. Despite the increasing need to raise the level of revenue collection, developing countries still face the challenges of low tax compliance. Capital gains taxes for practical and political reasons are perpetually riddled with exemptions and exceptions making them complicated to administer and to comply with. The big complication is determining the true capital gain net of inflation after netting out the purchase price and the cost of maintenance and investment in the asset over the years. The main objective of this study was to establish the determinants of Capital Gains Tax performance among property owners in Nakuru City, Kenya. The specific objectives were to determine the effect of taxpayers‟ sensitization, systems automation and taxpayers‟ perception on capital gains tax performance. This study was built on the benefit theory of taxation, universal theory of acceptance and use of technology and social influence theory. The study adopted explanatory research design. The target population was 6,231 property owners with movable and immovable properties in Nakuru City where a sample of 376 property owners was drawn. Primary data collection was employed in the study using structured questionnaires. The study used descriptive statistics and multiple linear regression analysis to establish the effect of the determinants of capital gains tax performance. The study findings showed that taxpayers‟ sensitization, systems automation and taxpayers‟ perception had a statistically positive significant effect on capital gains tax performance with evidence of beta values of: taxpayers‟ sensitization (β1=0.357, p=0.000<0.05),systems automation (β2=0.261, p=0.003<0.05) and taxpayers‟ perception (β3=0.285, p=0.001<0.05).The study results concluded that taxpayers‟ sensitization, systems automation and taxpayers‟ perception had significant influence on capital gains tax performance. Based on the findings, the study recommends that KRA should pay more attention on taxpayers‟ sensitization that contributes to online payment process being efficient in payment of taxes. The study therefore suggests that future research should be conducted to investigate effect of other variables such as cost and tax knowledge on Capital Gains Tax performance.
Determinants of Carbon Finance Uptake and its role in Deployment of Renewable Energy Projects in Kenya
(2018-05) Bernard Baimwera
Carbon finance has been advanced as a strong financial mechanism to help the world transition to low carbon development, in the face of ravaging climate change. Projects that sequester greenhouse gases from the atmosphere are eligible to accrue carbon finance, either through sale of carbon credits in the designated carbon markets or through other flexible mechanisms. This thesis analyzed the determinants of carbon finance accrual in renewable energy projects, in the context of a low and middle income country, Kenya. The aim was to explore the role played by carbon finance in promoting the deployment of renewable energy, as envisaged in the international climate agreements, for a country with a reportedly enormous renewable energy potential. While carbon finance use in renewable energy has been extensively analyzed in developed countries, low and middle income countries, especially those in Africa, have received considerably less attention. In an attempt to address this gap, the thesis analyzed the determinants of carbon finance uptake in renewable energy projects registered under the Feed-in-Tariff scheme of the Kenyan government. Renewable energy projects were selected because prior evidence shows that a significant percentage of carbon finance is targeted to these projects, because of their emission reducing abilities. Triangulation of methodology, including the use of questionnaires, interviews and analysis of policy documents, was used to collect and analyze qualitative and quantitative data from renewable energy projects and other carbon business stakeholders on their understanding, uptake and determinants of carbon finance accrual in renewable energy projects. In addition to analyzing the determinants of carbon finance uptake, the study uncovered the constraints of accessing carbon finance and the challenges renewable energy developers face in the country. The evidence and analyses presented reveal that the size of the renewable energy project, the carbon market affiliation of the project and the level of low carbon technology employed in the project are significant determinants of carbon finance flows into the projects. At the same time, lack of capital to develop renewable projects to completion, primarily the absence of financial instruments from local banks and high transaction costs to meet carbon credits generation were identified as the main constraints in accessing carbon finance by the developers. The analyses also reveal low levels of understanding and awareness of the carbon finance uptake, suggestive of the low levels of uptake that were uncovered by the study. Based on these findings, the research recommends for the creation of a framework to educate and create awareness to local renewable energy developers on the existence and processes of accessing carbon funds from international carbon markets. There is also need to develop financial instruments to cater for risk investments with environmental benefits like those in renewable energy in the Kenyan capital market.
Determinants of consumption tax compliance among micro and small enterprises in Ruiru Town
(Kenya School of Revenue Administration_Moi University, 2020) Thuku, Mike Njogu
Micro and small enterprise sector is the largest employer in Kenya accounting for over 80% of all employment. The sector also contributes significant proportion of the national GDP estimated to be over 20%. However, tax revenue contribution from this sector is below expectation and accounts for less than 3% of all tax revenue collected. This study was conducted to establish the determinants of consumption tax compliance among micro and small enterprises in Ruiru town. The specific objectives of the study were to determine the effect of tax administration on consumption tax compliance among micro and small enterprises in Ruiru town, to establish the effect of the size of enterprises on consumption tax compliance among micro and small enterprises in Ruiru town and to determine the effect of taxpayer education on the level of consumption tax compliance among micro and small enterprises in Ruiru town. The study was founded on social contract and ability to pay theories which express tax as a contractual obligation payable according to taxable capacity of taxpayers. The study targeted micro and small enterprises in Ruiru town in Kiambu County and adopted an explanatory research design to understand what, why and by how much, aspects of micro and small enterprises determine consumption tax compliance among these enterprises. A pilot study was conducted in Juja town to test the validity and reliability of the research instruments that were used for the study. A structured questionnaire was used to collect primary data from a sample of 127 enterprises which were selected through random sampling from a population of 161 micro and small enterprises licensed by Ruiru Sub-county Business Licensing Department. The data collected was tested for validity and reliability and analyzed. Tax administrations, size of enterprise and taxpayer education were found to have significant effect on consumption tax compliance with p<0.05 for all the variables. Tax administration was found to have a Beta coefficient of 0.363, 0.223 for size of enterprise and 0.636 for taxpayer education against consumption tax compliance respectively. The independent variables were found to cause 36.9% change of compliance tax compliance when combined with R Square of 0.369 at p<0.05. Multiple regression analysis was performed and yielded the regression equation of the study. The study then made conclusions on tax administration, Size of the enterprise and taxpayer education that all the independent variables were found to play a significant role in the consumption tax compliance among micro and small enterprises in Ruiru town. The study found that tax compliance checks and tax audits have a significant effect on consumption tax compliance and recommended that KRA should employ qualified staff who will be able to conduct comprehensive tax audits and those found to be non-compliant should be encouraged and assisted where necessary. The study also recommended that KRA should simplify the procedures and processes involved in filing of returns and payment of taxes and make them understandable and executable by all taxpayers including those without special expertise. The study also recommended enhancement of taxpayer education through incorporating it as a subject in school curriculum from lower levels of education. Tax seminars should be made more frequent, free of charge and open for all and properly publicized to reach more people. It was also recommended that KRA focus on all enterprises irrespective of their size to promote tax compliance for all enterprises.
Determinants of Corporation Tax Performance among Small and Medium Enterprises in Nairobi Central Business District,Kenya
(KeSRA/Moi Unpublished Research Project, 2022) Mbewa, Gordon Oscah Ochieng
Corporation tax is a key source of revenue for most governments across the globe that enables them to provide public goods and services such as free education, subsidized medical services and infrastructure. However, its performance in Kenya has been below target. This is majorly attributed to the SMEs who despite contributing significantly to the GDP are under taxed. This study was to determine factors affecting corporation tax performance among small and medium enterprises Nairobi central business district, Kenya. The objectives of the study were Specifically, to determine the effect of taxpayer education on corporation tax performance among small and medium enterprises Nairobi central business district, to establish the effect of system automation on corporation tax performance among small and medium enterprises Nairobi central business district, to determine effect of tax audit on corporation tax performance among small and medium enterprises Nairobi central business district and to establish the effect of deterrence sanctions on corporation tax performance among small and medium enterprises Nairobi central business district. The study was supported by three theories of taxation namely; Ability to pay theory, Economic Deterrence Theory and Theory of Technology Acceptance. The study adopted an explanatory research design. The target population was 3461 who are small and medium enterprises in Nairobi central business district and Sample size of 358 respondents The primary data was collected by use of questionnaires, Regression analysis was used to determine the significance and relationship of the variables. Statistical tools for data analysis comprising descriptive and inferential statistics were applied to evaluate variations in manifestations of the variables and to test the hypotheses respectively. The findings indicated that the independent variables had a statistically positive significant effect on corporation tax performance: taxpayer education (β 1= 0.237, p=0.000<0.05), system automation (β 2= 0.275, p=0.000<0.05) tax audit (β 3= 0.359, p=0.002 <0.05) and deterrence sactions (β 3= 0.281, p=0.000 <0.05) The results concluded that taxpayer education, system automation, tax audit and deterrence sanctions significantly affect corporation tax performance. Based on the findings, the study recommends that KRA to pay more attention on tax audit that would enhance corporation tax performance. Therefore, future research can be done on other variables such as the effect of compliance cost on corporation tax compliance among SMEs in Nairobi County Kenya.

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