The effects of liquidity level on stock returns: the Nairobi stock exchange evidence.
Abstract
In 2005, the concept of 'Tax Clinics' was adopted by the Kenya Revenue Authority
(KRA), with service oriented approach where taxpayers were educated on various tax
matters. During the clinics, taxpayers were given a chance to air their grievances and
make suggestions on service improvement. Services such as issuance of PIN Card,
Valued Added Tax (VAT) registration, Electronic Tax Register (ETR), Income Tax
returns, driving license, Transport Licensing Board (TLB), Public Service Vehicle (PSV)
licenses for drivers and conductors, and transfer of logbooks were provided on site at the
tax clinics. The broad objective of the study was to determine the effectiveness of
taxpayers' education in revenue collection by KRA.
The study applied a descriptive research design. The study was conducted in Nairobi
region, where the region was sub-divided into four administrative regions namely:
Nairobi North, Nairobi East, Nairobi West, and Nairobi South. The sub-regions were
applied as the sampling strata for taxpayers. A sample of 120 taxpayers was drawn from
the four sub-regions through simple random sampling. Questionnaires were used in
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collection of primary data. The data was analysed by application of a mix of both
quantitative and qualitative techniques. The findings were presented using tables and
charts.
The findings established that taxpayer education had enhanced revenue collection by
KRA. The findings revealed that taxpayer education had enhanced the following aspects
in regard to revenue collection: the public level of understanding on various taxes at
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KRA; tax compliance among non- co-operate taxpayers; reduction of tax evasion; and
ease of filing tax returns by taxpayers. The study recommends that KRA should strive to
improve service delivery options to taxpayers; facilitate participation by all sectors and
categories of taxpayers; simplify the tax process; increase the scope of electronic tax
services; deliver focused taxpayer education programmes and guidance instructions to
taxpayers; formulate measures to increase the participation of taxpayers in the tax; and
ensure timely response to the dynamics affecting revenue collection from time to time
Sponsorhip
The University of NairobiPublisher
School of Business ( SOB )