Browsing by Author "Nganyi, Silas Muyela"

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    Determinants o f Government Expenditure o n Public Flagship Projects i n Kenya
    (Canadian Center of Science and Education, 2019) Nganyi, Silas Muyela; Jagongo, A. O.; Atheru, Gerald Kalenywa
    The Kenya Vision 2030 flagship projects expected to generate rapid economic growth in the country are threatened by inadequate source of funding, financial management problems and failure to link policy, planning and expenditure budgeting. The projects continue to experience inadequacies in project appraisal and implementation time overruns. Therefore, without a clear financial framework, fiscal indiscipline, resource misallocation and inefficient use of resources will militate against achieving the Kenya Vision 2030 targets. The overall objective of this study was to evaluate determinants of government expenditure on public flagship projects in Kenya The specific objectives were to: evaluate the influence of planning process; source of funds; and management responsibility on government expenditure on public flagship projects in Kenya. The theories reviewed in the study were public finance, budget, cost benefit analysis and principal agent which provided grounds for conceptual framework. The study employed descriptive research design, positivist philosophy and multiple regression model. The target population was the planned 348 flagship projects for the period 2008 2012. The unit of analysis was projects based on sample size of 96 stratified r andom sample while data was collected using a questionnaire. The findings showed that planning process, source of funds and management responsibility had significant positive influence in determining government expenditure on public flagship project in Kenya. The study recommended that, public entities should strengthen and improve planning process by deepening MTEF within programme based budgeting; the National Treasury should increase resources required for financing public flagship projects by considering public private partnerships as a potential source; and public entities should improve, strengthen and enforce management responsibility when designing public flagship projects. The two areas suggested for further research were; impact of project characteristics on the choice of Public Private Partnership financing model and impact of fiscal decentralization on financing public projects in light of devolved systems of governance in Kenya.
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    Intervening Effect of Corporate Performance on the Relationship between Investment Incentives and Effective Corporate Tax Rate for Manufacturing Firms in Kenya
    (The Strategic Journal of Business & Change Management, 2024-01) Nganyi, Silas Muyela; Koori, Jeremiah; Abdul, Farida
    Effective corporate tax rate remain a subject of interest to firms, policy makers and researchers. It measures real level of tax burden imposed by national tax system at firm level. The main problem is how to reduce it at firm level. To address this, government across the world implement various investment incentive framework aimed at lowering effecting corporate tax rate. The intention of low effective corporate tax rate is to influence investments, facilitate capital formation, increase productivity and grow firms. However, effective corporate tax rate in Kenya is still a problem averaging 31.3 percent for the last 10 years and has not been declining towards zero as recommended by the World Bank. Such high effective corporate tax rate militates against desired competitive corporate environment for the manufacturing sector. The manufacturing sector in Kenya has deteriorated to 7.4 percent contribution to gross domestic product which is less than 15 percent as envisaged in Kenya Vision 2030. This undesirable phenomenon therefore prompted the design of this study. The objective of the study was to determine the intervening effect of corporate performance on the relationship between investment incentives and effective corporate tax rate for manufacturing firms in Kenya. The theories underpinning this study were optimal corporate taxation, political power and neoclassical investment. The study adopted positivist philosophy and longitudinal research design. The target population was 1,092 firms registered with Kenya Association of Manufacturers. Stratified random sample of 278 firms provided secondary data for the period 2010 to 2020. Descriptive and inferential statistics were generated using panel data regression analysis. The intervening model was analysed at significance level of 5 percent. The findings established that corporate performance had intervening effect on the relationship between investment incentives and effective corporate tax rate. It was recommended that both the National Treasury and manufacturing firms should have a robust financial framework for monitoring and evaluation of how effective corporate tax rate responds to investment incentives and corporate performance. The study added to finance knowledge that fiscal policy affects corporate operations.
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    Investment Incentives and Effective Corporate Tax Rate for Manufacturing Firms in Kenya
    (International Journal of Economics and Finance, 2024-01-10) Nganyi, Silas Muyela; Koori, Jeremiah; Abdul, Farida
    Effective corporate tax rate is a finance subject of interest to firms, policy makers and researchers. It measures level of tax burden at firm level. Thus, governments implement various investment incentives to influence effective corporate tax rate. The effective corporate tax rate in Kenya is still a problem averaging 31.3 percent for the last 10 years. Such high effective corporate tax rate militates against desired competitive corporate environment for the manufacturing sector. In the last ten years, the manufacturing sector has deteriorated to 7.4 percent contribution to gross domestic product which is less than 15 percent as envisaged in Kenya Vision 2030. This undesirable phenomenon prompted design of this study. The objective of the study was to determine the effect of investment incentives on effective corporate tax rate. The study adopted positivist philosophy and longitudinal research design. A sample of 278 firms provided secondary data for the period 2010 to 2020. Descriptive and inferential statistics were conducted using panel data regression. The study established that investment incentives are statistically significant predictors of effective corporate tax rate for manufacturing firms in Kenya. The study recommends that public policy makers should design appropriate profit based, capital investment and custom duty incentives as part of fiscal policy instruments to grow firms involved in manufacturing. The study has added to finance knowledge that fiscal policy affects corporate operations. However, there is need for further investigation on other possible investment incentives that were not covered in this study that influence effective corporate tax.
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    Investment Incentives and Effective Corporate Tax Rate for Manufacturing Firms in Kenya
    (Canadian Center of Science and Education, 2024-01) Nganyi, Silas Muyela; Koori, Jeremiah; Abdul, Farida
    Effective corporate tax rate is a finance subject of interest to firms, policy makers and researchers. It measures level of tax burden at firm level. Thus, governments implement various investment incentives to influence effective corporate tax rate. The effective corporate tax rate in Kenya is still a problem averaging 31.3 percent for the last 10 years. Such high effective corporate tax rate militates against desired competitive corporate environment for the manufacturing sector. In the last ten years, the manufacturing sector has deteriorated to 7.4 percent contribution to gross domestic product which is less than 15 percent as envisaged in Kenya Vision 2030. This undesirable phenomenon prompted design of this study. The objective of the study was to determine the effect of investment incentives on effective corporate tax rate. The study adopted positivist philosophy and longitudinal research design. A sample of 278 firms provided secondary data for the period 2010 to 2020. Descriptive and inferential statistics were conducted using panel data regression. The study established that investment incentives are statistically significant predictors of effective corporate tax rate for manufacturing firms in Kenya. The study recommends that public policy makers should design appropriate profit based, capital investment and custom duty incentives as part of fiscal policy instruments to grow firms involved in manufacturing. The study has added to finance knowledge that fiscal policy affects corporate operations. However, there is need for further investigation on other possible investment incentives that were not covered in this study that influence effective corporate tax.