Gisaina, Wilfred Magara2020-03-032022-06-072020-03-032022-06-072019https://ikesra.kra.go.ke/handle/123456789/693PROJ 336.17 GISThe “Big Four” development agenda: housing, security, affordable healthcare and manufacturing largely depends on government funding in order for this objectives to be met. Tax collection has to be taken into consideration since in Kenya like other economies it forms the largest source of revenue for the government. Despite Kenya Revenue Authority taking various measures in bid to improving tax collected, such efforts have been fruitless as far as meeting its revenue targets is concerned for the last decade. This poses a major concern on meeting future obligations caused by ever increasing deficits. Targets are set based on the projections of growth in economic activities as measured by macroeconomic indicators performance. The study sought to establish the effect of macroeconomic factors on the tax revenue in Kenya. The study was guided by an objective; to examine the effect of the selected macroeconomic factors on tax revenue performance in Kenya. The selected macro-economic factors included inflation rate, Government spending, and Gross Domestic Product. Causal research design was employed in determining the relationship between the dependent and independent variables. The main source of data was secondary data covering the period of 1991 to 2019. Tax revenue data was obtained from the Kenya Revenue Authority, the inflation rates were obtained from the records of the Central Bank of Kenya, annual GDP growth rates were retrieved from the annual publications of the Kenya National Bureau of Statistics while details of government spending were retrieved from the World Bank’s website. Data analysis was based on linear regression OLS estimation technique. The results indicated that GDP and government spending positively impacted tax revenue whereas, inflation was found to lower tax revenue as revealed by a negative correlation. All the variables were significant at 95% confidence level. Further research should be done on other macro-economic factors individually since the ones mentioned in the study are not the only factors affecting tax collection. The study focused on overall tax collection and not on specific type of taxes.enGovernment expenditureMacroeconomic factorsTax revenueProjects