Informal Sector and Taxation in Kenya: Causes and Effects
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Date
2017
Authors
Ndaka, Angella Katee
Journal Title
Journal ISSN
Volume Title
Publisher
Academia edu
Abstract
Finance whether public or private, domestic or international is one of the pillars
for sustainability of any state. Any government/state needs funds to finance its institutions,
agencies, development projects, its security apparatus, to pay workers and to finance its
social enterprises just to name a few. Public finance is thus pertinent for growth and
sustainability of any economy and can be either domestic private or domestic public,
international public or international private finance, it can also be blended finance. Either
way, public finance is critical for financing every economy that aspires for sustainable
development. This is because revenue or tax is used not only to fund education and health
which are key pillars for promotion human capital growth but also helps in supporting the
growth of local economy through development of infrastructure which support the local
business networks and, cash transfers and subsidies which help induce supply and demand in
local markets. Tax administration and policy should be among the biggest concerns for any
struggling economy. Every country desires to have a tax administration instrument that is
efficient in collection of the taxes and a tax payer base that is fully compliant. This paper will
analyze the causes and effects of the Informal sector on revenue collection in Kenya. It shall
draw from secondary data findings in Kenya and through meta-analysis conclude that Kenya
needs to relook its tax administration and policy if it is going to make progress in Public
finance.
Description
Article
Keywords
Public Finance, Tax, Tax Policy, Tax administration, Growth
Citation
Ndaka, A. K. (2017). Informal sector and taxation in Kenya: Causes and effects. International Journal of Law, Humanities and Social Science, 1(4), 77-86.