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Browsing BCOM Research Projects by Author "Masese, M. P."

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    Factors affecting tax compliance among small and medium enterprises in Nairobi’s central business district, Kenya
    (Strathmore University, 2025) Masese, M. P.
    Tax is an important stream of revenue for government's development projects and therefore all efforts must be made by governments to ensure that it is accurately and efficiently collected so as to facilitate the government's operations. In an effort to maximize collection of revenue and efficiency in tax administration, key changes to tax policy evolving around ensuring equity, further widening the tax base, promoting increased investment and in doing so, reducing the tax compliance burden, have in the recent past been made by the Kenyan government. This study sought to identify the factors that influence tax compliance in Kenya, specifically focusing on SME's operating within Nairobi's Central Business District. The researcher outlined a detailed literature review and identified the variables for this research. The dependent variable being tax compliance, the independent variables being tax rates, tax literacy, compliance costs and tax attitude. The tax rate included those of Corporate Tax and Value Added Tax. The research was a descriptive survey. Given the large population of registered SMEs in Nairobi, a sample size of 194.The research was conducted using questionnaires which were distributed out with the help of two assistants and the results were out the data was analyzed by coding according to variables in the study for efficiency so as to reduce replies given by respondents to a small number of classes. The study found that tax literacy, compliance costs, tax rates, and taxpayer attitudes significantly influenced tax compliance among SMEs in Nairobi's CBD. Tax literacy was the most impactful factor, with SMEs that understood tax processes showing higher compliance. High tax rates and prohibitive compliance costs discouraged many businesses from adhering fully to tax regulations. Mixed attitudes towards tax payments were observed, influenced by perceived inefficiencies in government expenditure. The conclusions emphasized the need for improved tax education, simplified filing processes, and reduced compliance costs to enhance voluntary compliance. Recommendations included progressive tax rate adjustments, subsidized professional support for SMEs, and initiatives to rebuild trust in government spending through increased transparency.