EFFECTS OF POLITICAL RISK FACTORS ON TAX REVENUE IN KENYA

Автори

  • Manyanza Rhodah Mueni Department of Applied Economics, School of Economics, Kenyatta University, P.O Box 43844 -00100, Nairobi, Kenya
  • Nelson H. Wawire Department of Applied Economics, School of Economics, Kenyatta University, P.O Box 43844 -00100, Nairobi, Kenya
  • Perez A. Onono Department of Applied Economics, School of Economics, Kenyatta University, P.O Box 43844 -00100, Nairobi, Kenya

ДОИ:

https://doi.org/10.46827/ejefr.v5i1.1068

Клучни зборови:

tax revenue, democratic accountability, bureaucracy quality, internal conflict

Апстракт

A broad range of tax reforms have been implemented in Kenya in the post-independence period with the objective of increasing tax revenue for promoting economic growth with reduced reliance on external funding. Most of the reforms have targeted broadening of the tax base. However, tax collections remain inadequate, and deficits have persisted. Past studies on tax revenue growth have looked at effects of foreign sector, stage of development, demographic factors and sectoral mix on tax revenue. The models used in those studies did not factor in political risk factors including democratic accountability, bureaucracy quality and internal conflict. Such factors can have significant direct or indirect influence on tax revenue. This study estimated tax revenue models with these factors captured using data for the period 1984 to 2016. The findings show that increase in bureaucracy quality and democratic accountability lead to increase in tax revenue. Efficiency of institutions is shown to enhance tax collections during periods of social strife suggesting the presence of displacement and inspection effect. Internal conflicts are shown to cause declines in tax revenues. The government of Kenya and its revenue authority should therefore strengthen the quality and efficiency of institutions and effective control measures on acts of civil war, terrorism and civil disorder alongside the tax reforms to increase tax revenues. JEL: H20; H21; H25

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Биографии на авторите

  • Manyanza Rhodah Mueni, Department of Applied Economics, School of Economics, Kenyatta University, P.O Box 43844 -00100, Nairobi, Kenya
    Rhodah Mueni Manyanza is a lecturer of Economics specializing in Public Sector Economics, International Economics, Planning and Evaluation in the School of Economics of Kenyatta University. She has eight years’ experience in teaching and research at the university level. She holds a PhD in Economics and M.A (Economics) from Kenyatta University. She has carried out research on topics of taxation policy and investment.
  • Nelson H. Wawire, Department of Applied Economics, School of Economics, Kenyatta University, P.O Box 43844 -00100, Nairobi, Kenya
    Professor Nelson H. W. Wawire is a Full Professor of Economics specializing in Macroeconomics, Monetary Policy, Public Sector Economics, Project Appraisal, Planning and Evaluation and Women Economic Empowerment. He has over 28 years’ experience in teaching, researching, consulting and offering community services at the University level. He is a reviewer for various International Journals, a resource person for the African Economic Research Consortium and a consultant for the World Bank, Centre for Global Development, and Government ministries and Departments. He has carried out research and published 41 articles, 8 books, 10 book chapters, five Policy briefs and two Country Notes on a wide range of topics and themes including but not limited to monetary policy, fiscal policy, Small Medium Enterprises, health economics and project evaluation.
  • Perez A. Onono, Department of Applied Economics, School of Economics, Kenyatta University, P.O Box 43844 -00100, Nairobi, Kenya
    Dr. Perez Ayieko Onono is a Senior Lecturer with 12 years of university teaching experience in the department of Applied Economics at the School of Economics of Kenyatta University. She is also the Dean of the School of Economics. She holds a PhD in Economics, and M.A (Economics) from Kenyatta University, Post Graduate Diploma in Education (PGDE) from Maseno University and BSc. in Agricultural Economics from Egerton University. Dr. Onono is an active consultant and researcher with a wide range of training and research experience in areas related to Human Development and Poverty analysis, Agricultural policy analysis, Agricultural productivity analysis, Taxation policy and fiscal decentralization¬¬.

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Преземања

Објавено

2021-05-20

Издание

Том. 5 Бр. 1 (2021)

Секција

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