Determinants of tax payment among large taxpayers in Kenya: moderated by change of tax policies

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dc.contributor.authorAli, A.
dc.date.accessioned2025-08-01T15:59:41Z
dc.date.available2025-08-01T15:59:41Z
dc.date.issued2025
dc.descriptionFull - text thesis
dc.description.abstractTax revenue is a vital source of income for governments, enabling the provision of public services and infrastructure for national development. However, non-compliance particularly among large taxpayers, remains a significant challenge, creating substantial revenue gaps. In Kenya, despite the implementation of modern tax systems like iTax and eTIMS, tax non payment still persists. This study investigated the determinants of tax payment among large taxpayers firms in Kenya, focusing on the moderating effect of change of tax policies. Specifically, the study sought to determine the effect of tax system-related factors, taxpayer-related factors, tax collector related factors as well as macroeconomic factors on tax payment among tax firm in Kenya. The research was grounded in the Theory of Planned Behavior and Deterrence Theory. The study adopted a positivist research philosophy and a correlational design. The target population comprised 2,089 large taxpayers registered with the Kenya Revenue Authority. From this population, a sample size of 335 was drawn using Slovin's formula and simple random sampling. Data was collected via structured questionnaires using a 5-point Likert scale, and a pilot study involving 10% of the sample tested instrument reliability using Cronbach's alpha. The head of the tax department of the large taxpayer filled the questionnaire. Data analysis was conducted using SPSS version 26, employing OLS multiple regression. The study concluded that tax system related factors, taxpayer related factors and tax collector related factors have a positive and statistically significant influence on tax payment among large taxpayers in Kenya. Macroeconomic factors had negative and significant effect on tax payment among large taxpayers in Kenya. Upon testing for moderation, all the interactive terms were statistically insignificant in predicting tax payment. The results imply that change of tax policies does not moderate the relationship between tax payment among large taxpayers and its determinants among large taxpayers in Kenya. The study recommended that the tax systems in Kenya be made simple to reduce on compliance costs as well as enhance clarity. Going digital and streamlining tax procedures for filing and payment of taxes as well as minimizing bureaucratic procedures leads to enhanced taxpayer experience as well as the degrees of compliance. KRA should organize trainings and capacity building including taxpayer education, fostering trust and reducing compliance costs. The tax collectors should also enhance efficiency, transparency, and professionalism in tax administration to enhance the level of compliance among the large taxpayers under study. The external factors such as macro-economic conditions, like inflation and unemployment should also be addressed by the government to ease pressure on consumption and create revenue for tax payment. The study finally recommended that the government should avoid frequent shifts in tax policies and enforcement strategies that can create uncertainty especially during government policy changes to enhance tax payment.
dc.identifier.citationAli, A. (2025). Determinants of tax payment among large taxpayers in Kenya: Moderated by change of tax policies [Strathmore University]. http://hdl.handle.net/11071/15733
dc.identifier.urihttp://hdl.handle.net/11071/15733
dc.language.isoen
dc.publisherStrathmore University
dc.titleDeterminants of tax payment among large taxpayers in Kenya: moderated by change of tax policies
dc.typeThesis
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