Determinants of tax evasion among individual taxpayers and moderating role of demographic factors in Nairobi Metropolitan area, Kenya

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dc.contributor.authorKuria, S. N.
dc.date.accessioned2024-07-22T09:42:30Z
dc.date.available2024-07-22T09:42:30Z
dc.date.issued2024
dc.descriptionFull -text thesis
dc.description.abstractThis study was motivated to establish the determinants of tax evasion and moderating role of demographic factors of age and level of education among individual taxpayers in Nairobi, Kenya. This was precisely addressed by four specific objectives; namely, to establish the influence of behavioral, administrative and economic factors on tax evasion among individual taxpayers in Nairobi Metropolitan area, Kenya, besides establishing the moderating role of age and level of education. The study was anchored on the Economic Deterrence Theory, Theory of Planned Behaviour, the Classical Growth Theory and the Social Identity Theory. The study was guided by the descriptive correlational research design. The target population was individual taxpayers based in the Nairobi Metropolitan area, Kenya. Based on anecdote data, the target population comprised of 10,411,220 people living in the five counties of Nairobi Metropolitan area, Kenya, namely, Nairobi, Machakos, Kajiado, Kiambu and Murang’a. The total sample size of the individual taxpayers to be randomly sampled were 768. A structured questionnaire was used to collect data. A pilot test was carried out of 78 individual taxpayers before the main data collection exercise in order to assess the reliability and the validity of the questionnaire. Cronbach’s alpha test was used assess the reliability of the questionnaire. The factor analysis model was used by the study to assess the construct validity of the survey tool. Descriptive and Multinomial Logistic regression models were used to show the effect of behavioral, administrative and economic factors on tax evasion among the individual taxpayers in Nairobi Metropolitan area, Kenya, and how age and level of education moderates the relationship between the factors and tax evasion. Results showed that; there is a significant negative impact on the likelihood of major tax evasion for every one-unit increase in the behavioral factors score; for every one-unit increase in the administrative factors score, the odds of major evasion decrease by a big margin; when the economic factors score increases by one unit, the odds of major evasion increased greatly. Additionally, results revealed that age and education moderate the relationship between behavioral factors and tax evasion; between administrative factors and tax evasion; but do not significantly moderate the relationship between economic factors and tax evasion. It is concluded that enhancements in taxpayer behavior, such as increased compliance, ethical tax practices, adherence to religious principles, and positive tax morale, substantially reduce the probability of engaging in major tax evasion. It is recommended that policymakers should promote ethical tax practices and enhance taxpayer behavior through targeted education campaigns and community programs that emphasize compliance, and positive tax morale. Key words: Tax morale, Tax evasion, Classical Growth Theory, Tax Compliance, Tax Incentives
dc.identifier.citationKuria, S. N. (2024). Determinants of tax evasion among individual taxpayers and moderating role of demographic factors in Nairobi Metropolitan area, Kenya [Strathmore University]. http://hdl.handle.net/11071/15497
dc.identifier.urihttp://hdl.handle.net/11071/15497
dc.language.isoen
dc.publisherStrathmore University
dc.titleDeterminants of tax evasion among individual taxpayers and moderating role of demographic factors in Nairobi Metropolitan area, Kenya
dc.typeThesis
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