Effect of Tax Payer Education on Tax Compliance among SMEs in Kenya, A case of motor vehicle spares traders Iin Nakuru Town Suburb Area

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dc.contributor.authorNjoki, Mwangi John
dc.date.accessioned2023-05-08T10:17:20Z
dc.date.available2023-05-08T10:17:20Z
dc.date.issued2020
dc.description.abstractThe level of tax compliance among the small and medium tax payers is described as low by Kenya Revenue Authority. Kenya's SMEs have the potential to generate a great deal of tax revenue for the government, but that's not the case. The main objective of this study was to determine the effect of tax-payer education on motor vehicles traders' tax compliance in the Nakuru Town suburb of Kenya. The specific objectives included: to determine the effect of main stream media education, print media education, social media education and KRA stakeholders’ forums education on tax compliance among motor vehicles spare traders in Suburb area of Nakuru town, Kenya. The study was anchored on four theories: theory of planned behavior, economic deterrence theory, optimal taxation theory and presumptive taxation theory. Explanatory research design was adopted. The target population for the study was 300 traders dealing in motor vehicles spares in Suburb area of Nakuru town. A sample size of 150 traders was selected using simple random sampling technique. The study collected primary data by use of structured questionnaires. To explain the characteristics of the study variables, data collected was calculated and analyzed using descriptive statistics including frequencies, percentages, means and standard deviations. The relationship between the independent variable and the dependent variable was tested using inferential statistics such as Pearson correlation and regression. The findings indicated a combined R square of 0.615. This shows that main stream media education, social media education, KRA’s stakeholder’s education forums and print media tax payers education explains 61.5% of the tax compliance. The findings also indicated that print media tax payer’s education (β=0.315, p=0.000, R Square=0.414), social media education (β=0.292, p=0.000, R Square=0.381), main stream media education (β=0.205, p=0.003, R Square=0.285) and KRA’s stakeholder’s education forums (β=0.184, p=0.003, R Square=0.310) had a positive and significant effect on tax compliance among motor vehicles spare traders in Suburb area of Nakuru town, Kenya. The study concluded that all the independent variables (main stream media education, social media education, KRA’s stakeholder’s education forums and print media tax payer’s education) jointly have a positive and significant relationship with tax compliance. The study recommends inclusion of tax education in Kenya primary and education curriculum to prepare young learners who are future tax payers on the importance of tax compliance. The study also recommends that the KRA needs to scale up its social media engagement of the enlightenment of taxpayers since the use of social media platforms is very convenient given the advent and advantages brought about by use of smartphone technology. The business traders in Nakuru town are likewise, encouraged to adhere to tax compliance since the compliance is more beneficial to the country’s economy. In addition, they need to acknowledge the information updated on the social media platforms, newspapers as well as the ones advertised on national televisions.en_US
dc.identifier.urihttps://ikesra.kra.go.ke/handle/123456789/2791
dc.language.isoen_USen_US
dc.publisherKenya School of Revenue Administration_Moi Universityen_US
dc.subjectMain Stream Media Educationen_US
dc.subjectPrint Media Educationen_US
dc.subjectSmall Taxpayersen_US
dc.subjectTax complianceen_US
dc.subjectTax educationen_US
dc.subjectTaxen_US
dc.titleEffect of Tax Payer Education on Tax Compliance among SMEs in Kenya, A case of motor vehicle spares traders Iin Nakuru Town Suburb Areaen_US
dc.typeThesisen_US

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