Tax incentives and flow of foreign direct investment of manufacturing firms in Kenya.

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dc.contributor.authorMusyoki, Grace Mwikali
dc.date.accessioned2020-02-28T13:04:26Z
dc.date.accessioned2022-06-07T06:50:18Z
dc.date.available2020-02-28T13:04:26Z
dc.date.available2022-06-07T06:50:18Z
dc.date.issued2019
dc.descriptionPROJ 338.973 MUSen_US
dc.description.abstractThe manufacturing sector in Kenya is key to unlocking the country’s economic potential. As part of the Big Four Agenda, there are several incentives that have been initiated by the government to encourage investment in the sector. However, there has been inconclusive empirical data indicating how foreign incentives influence the quantity of foreign direct investment geared towards the manufacturing sector in Kenya. This study sought to examine this gap. The study specifically sought to examine how investment deductions, 10-year corporate income tax holiday and 10-year withholding tax influence foreign direct investment in Kenya. Optimal tax theory, the expediency theory and the theory of investment form the basis of this study. A descriptive design was adopted with the study’s population comprising 65 Kenyan-based EPZ firms. The data used in the study was obtained from the annual reports of the manufacturing firms and KNBS data for the period 2013-2018. Data analysis involved descriptive statistical techniques while inferential analysis was helpful in determining the effect of tax incentives on the flow of foreign direct investment in the manufacturing sector. The research indicated there is positive relationship between tax incentives and foreign direct investment within EPZ firms in Kenya. The findings indicated that a unit change in investment deduction will result in a .017-unit change in foreign direct investment; unit change in 10-year withholding tax will result in a .042-unit change in foreign direct and a unit change in 10-year corporate tax will result in a .032-unit change in foreign direct investment. The research recommends that the government should conduct a review of all tax incentives offered in order to foster the implementation of the corporate tax, the withholding tax and investment deductions.en_US
dc.identifier.urihttps://ikesra.kra.go.ke/handle/123456789/634
dc.language.isoenen_US
dc.publisherKESRA/JKUAT - Unpublished research projecten_US
dc.subjectWithholding Taxen_US
dc.subjectTax incentivesen_US
dc.subjectCorporate Income Taxen_US
dc.subjectForeign Direct Investmenten_US
dc.titleTax incentives and flow of foreign direct investment of manufacturing firms in Kenya.en_US
dc.typeProjectsen_US

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