What Drives Tax Morale in Kenya?

Abstract

This research aimed at analyzing drivers of tax morale in Kenya. In doing so, it sought to determine the effects of perceived trust in KRA and government, perceived corruption in KRA and in government, national pride as well as identify the socio-economic and demographic factors the influence tax morale. The sixth Afro-barometer survey dataset was utilized. Employing ordered proit regression model, the study found that pride, trust in KRA, perceived corruption in KRA, age of the respondent and the respondents education level significantly influence tax morale in Kenya. Given these findings, the government through the ministry responsible for education and curriculum development should consider coming up with a curriculum that teaches issues of taxation at an early stage while at the same time continue implementing the 100 percent transition to secondary school education, KRA should continue building trust with the taxpayers to foster enhanced motivation, this can be done through continuous interaction with the taxpayer in ways that gives them confidence in the intentions of the revenue authority. Moreover, the government should consider tightening the fight against corruption, upholding the rule of law, initiating more feasible government projects that the citizen can identify with, given the social contract that the citizen has with the state.