Drivers of tax compliance among individual tax payers in Nairobi County in Kenya

Abstract

The aim of this study was to determine the drivers of tax compliance among individual taxpayers in Nairobi County in Kenya. The specific objectives were to analyze the influence of KRA related factors on tax compliance and the influence of Non-KRA factors on tax compliance. The study employed structured questionnaires on a sample of 384 individual tax payers in Nairobi County in Kenya. A response rate of 62.5% was achieved. Descriptive statistics, particularly the use of mean scores and regression analysis were used to analyze the findings of the study. Descriptive analysis revealed that being informed about tax obligations under Kenyan laws, withholding system of taxation, iTax platform of filing returns, penalties and tax audits done by KRA highly influence tax compliance. On the other hand, non-KRA factors comprising of influence of reference groups, services of a tax agent, government action to curb corruption and accountability, highly influence tax compliance. The regression analysis revealed that individual awareness of self- assessment system of taxation in Kenya positively influences tax compliance while being informed of one‟s tax obligations negatively influences tax compliance. The major limitation of the study was the exclusive use of questionnaires. Future studies should incorporate both interview guides and secondary data to provide robust research outcomes