Communication Channels and Tax Compliance in Kenya by Small Taxpayers in Nairobi City County, Kenya
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Date
2019
Authors
Pere, Margaret Wanjiru
Theuri, Joseph M.
Journal Title
Journal ISSN
Volume Title
Publisher
Stratford Peer Reviewed Journals and Book Publishing
Abstract
Taxation has played a crucial role in administering national income and more so in developed
countries. Although, both developed and developing countries have intensified measures to
enhance tax compliance and minimize reliance on foreign donations and internal and external
borrowing, the results of these measures cannot yield the desired results due to high levels of
tax avoidance. The main objective of this study was to establish the influence of channels of
communication on tax compliance by small taxpayers in Nairobi City County. The specific
objectives were to establish the influence of electronic, print media and stakeholders
sensitization programme influence on tax compliance by small taxpayers in Nairobi City
County. This study employed a descriptive research design. Descriptive research was used to
describe the opinions of the respondents regarding the communication channels and tax
compliance in Nairobi City County. The study targeted all small taxpayers in the four tax
stations/districts in Nairobi, who were approximately 839,560 taxpayers (employees and smallscale traders). The study used probability sampling and stratified random sampling method.
Random sampling technique was used later to sample individual taxpayers within the stratum
to eliminate research bias. The researcher collected primary data using a semi-structured
questionnaire. Secondary data was collected using secondary data collection schedule.
Construct validity in primary data and Content validity in secondary data was measured. The
generated data from SPSS was analysed using both descriptive and inferential statistics.
Descriptive statistics involved the use of frequencies, percentages, mean and standard deviation
to summarize the data. Inferential statistics involved the use of regression and correlation to
establish the relationship between the independent variables and the dependent variable. The
findings indicated that investing in Electronic communication channel is very expensive to
implement and sustain but government must make effort since this is one of the factors that
increase compliance among small taxpayers in Nairobi County. The study recommended that
due to increased tax compliance requirement by government, small taxpayers in Kenya should
monitor and respond to printed media communication channel updates to ensure that they
acquire and sustain the operations. To improve tax compliance the government should
emphasize on stakeholder sensitization programme. The study recommended that current policies be reviewed by assessing their relevance in order to take care of these emerging issues.
There is a need for Keya Revenue Authority (KRA) to enhance tax compliance through the use
of electronic, printed and stakeholder communication channels
Description
An Article Published in Journal of Finance & Accounting
Keywords
Electronic Communication, Print Media Communication, Stakeholder Sensitization Programme, Tax Compliance, Small Taxpayers, Nairobi City County
Citation
Pere M.W., & Theuri J.M. (2019), Communication Channels and Tax Compliance in Kenya by Small Taxpayers in Nairobi City County, Kenya, Journal of Finance & Accounting. Vol 3(1) pp. 51- 66.