Mutsiambo, Phelistas Ludia2019-09-122022-06-072019-09-122022-06-072018https://ikesra.kra.go.ke/handle/123456789/114Tax compliance remains a key area of focus in most governments all over the world and revenue collecting institutions. In Kenya, tax revenue has remained low compared to registered taxpayers in the KRA tax system. This scenario is the same even after continuous field audits, compliance checks, debt monitoring, enforcement, and market surveillance among other initiatives. Revenue collection stands at 19.5% of Gross Domestic Products (GDP). The main objective of this study was to investigate factors affecting compliance in revenue collection by medium taxpayers in Nairobi County. The study was guided by the following specific objectives, that is, to determine the influence of literacy level, business performance, tax law complexity and technology influence of tax compliance among medium taxpayers in Nairobi County. Most of the research done so far have always placed emphasis on compliance, tax evasion and avoidance, recent research indicates that taxpayers are ridden with challenges, which are often overlooked. This study adopted a descriptive research design. The study targeted medium enterprises operating their business in Nairobi’s Industrial area. There are 500 Medium Scale Enterprise operating in this area. This study adopted simple random sampling technique and this is chosen because the researcher focuses on traders operating in a given area. The nature of data that was used in this study was primary data. The data was presented in tables and graphs and explanation will be presented in prose. The study found that a majority of the medium taxpayers have moderate to slightly high levels of understanding of their tax obligations. Filing tax returns and comfortably engaging in various tax calculations without assistance. Majority of medium taxpayers, taxes paid are somewhat less than the profits they make. The study concludes that majority of the medium taxpayers have moderate to slightly high levels of understanding of their tax obligations particularly with regard to filing tax returns and comfortably engaging in various tax calculations without assistance. Majority of medium taxpayers, taxes paid are somewhat less than the profits they make. The tax laws are however moderately complex in respect to tax obligation as set out in various tax laws and comfortably engaging in filing tax returns as required by law. The study further concluded that deduced that technology has significantly enhanced revenue collection among a majority of medium taxpayers in the country particularly in registration of taxpayers using the electronic tax registers and in filing tax returns using the iTax System. The government should sensitize the taxpayers on the importance of paying tax. The study also recommends that Kenya Revenue Authority should embark on public awareness campaigns to educate the public on their role. Medium taxpayers should also be educated on basic tax calculations to reduce the indirect costs associated with compliance with this policy.enTax ComplianceArticle