Impact of Covid-19 Pandemic on Kenyan Tax Revenue
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Date
18-08-21
Authors
Ng’etich, Vincent
Kilonzo, Wilson Mwasya
Oure, Silas Okeyo
Njagi, Faith Muthanje
Kabiru, Agnes Wanjiru
Journal Title
Journal ISSN
Volume Title
Publisher
Kenya School of Revenue Administration
Abstract
The first case of Coronavirus-19 was detected in the Wuhan city in China in December 2019.
The virus first spread across the world leading to the declaration by the World Health
Organization (WHO) of the disease as a Public Health Emergency of international concern on
30th January 2020, and as a pandemic on 11th March 2020. In response to the pandemic, the
governments instituted various measures to either contain the spread of the virus or ameliorate
its effect on the citizenry. The government of Kenya put in place three different measures to in
response: fiscal policy measures, monetary measures and containment measures. Various
institutions within the government including the Kenya Revenue Authority (KRA) also put in
place additional measures to ensure continued service delivery. This study has investigated the
effects of fiscal policy measures, containment measures and KRA’s approaches to tax
collection on tax revenue. The theories that underpin this study are demand and supply theory,
technology acceptance theory (tam model) and Keynesian theory. The study employed a
descriptive cross-sectional study design, which employs mixed methods. The study population
were business entities. A questionnaire comprising of closed and open-ended questions was
developed and administered to the respondents. Generally, the study found that the fiscal
measures although had positive effect on the taxpayers, they had a negative effect on tax
revenue. The containment measures had negative effect on the business entities and by
extension tax revenue. With respect to the KRA’s approaches to tax collection during Covid-
19, they had mixed results. Recommendation have also been given including need for further
research in the area
Description
Keywords
Covid-19, Tax revenue
Citation
Ng’etich, V., Kilonzo, W., Oure, S., Njagi, F., & Kabiru, A. (2021). Impact of Covid-19 Pandemic on Kenyan Tax Revenue. African Tax and Customs Review, 4(2), 17. Retrieved from https://atcr.kra.go.ke/index.php/atcr/article/view/79