Strategies for enhancing the effectiveness of tax audits in Kenya Revenue Authority, Nairobi region: moderated by organizational culture
Date
2025
Authors
Tomno, I. J.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Ineffective tax audits can reduce government revenue, and undermine the integrity of the tax system. The significant gap between potential and actual tax revenue, frequent occurrences of tax evasion and avoidance, and a general lack of compliance among taxpayers points to the inefficiency and ineffectiveness of tax audits at the KRA. While there may be studies on the effectiveness of automation, whistleblower programs, taxpayer education, and continual professional training of tax audit strategies globally, limited research exists on its specific application and impact on tax audits within Kenya. The purpose of this study was to evaluate strategies for enhancing the effectiveness of tax audits in the Nairobi Region of the Kenya Revenue Authority. Specifically, the study sought to assess the influence of automation, whistleblower programs, taxpayer education and continual training on the effectiveness of tax audits in the KRA. The study also assessed the moderating role of organizational culture in the relationship between the implementation of tax audit strategies and the effectiveness of tax audits at the KRA, Nairobi Region. The study was anchored on the Technology Acceptance Model, Deterrence theory and the Human capital theory. The research adopted a positivist philosophy and utilized a descriptive correlational research design. The target population was the 10271 employees of the Kenya Revenue Authority in Kenya. The sample size was 214 employees from the KRA Nairobi Regional Audit Centres. Data collection was conducted through structured questionnaires and analyzed using both descriptive and inferential statistics. The presentation of the data was in the form of tables. The findings of the study may inform policy-makers and contribute to the academic field on the effectiveness of tax audits. The study found that automation, whistleblower programs, taxpayer education have a significant positive impact on the effectiveness of tax audits at KRA. The study revealed that organizational culture plays a significant moderating role in the relationship between tax audit strategies and audit effectiveness. The study recommends that KRA should continue to invest in the development and regular upgrading of automated systems, strengthen the whistleblower program and enhance its training programs. KRA should also continue to foster a positive organizational culture by promoting collaboration, shared goals, and adaptability to change.
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Citation
Tomno, I. J. (2025). Strategies for enhancing the effectiveness of tax audits in Kenya Revenue Authority, Nairobi region: Moderated by organizational culture [Strathmore University]. http://hdl.handle.net/11071/15827