IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

No images

United States United States
Your Time

User Statistics Info
IJSSE is one of the leading International Journals by User Statistics!

Login Form

IJSSE Newsletter Form
Full Names *
E-mail Address: *
Country *



Kimaru Thairu
Kenyatta University, Kenya

Jagongo Ambrose, PhD
Kenyatta University, Kenya


CITATION: Kimaru, T. and Jagongo, A  (2014). Adoption of Turnover Tax in Kenya: A Snapshot of Small and Medium Enterprises in Gikomba Market, Nairobi Kenya. International Journal of Social Sciences and Entrepreneurship, 3 (1), 18-30.



Turnover tax was introduced in Kenya in 2007 to enhance revenue collection, improve tax administration and reduce compliance and collection costs. On turnover tax recruitment, the performance has on average been below 50% with 2,890 SMEs registering for turnover tax against a target of 6,928 between 2009 and 2010. Despite the benefits accrued from the use of turnover tax and the low adoption, very few studies have been done on the same. This leaves a wide knowledge gap which this study seeks to fill-in. This study sought to establish the factors affecting the adoption of turnover tax in Kenya. Specific objectives were to establish whether tax administration practices, turnover tax training and tax environment policy influence the adoption of turnover tax by SMEs in Gikomba Market in Nairobi, Kenya. The target population of the study was 1405 SMEs at Gikomba market. Stratified random sampling technique was used to identify the respondents. Results revealed that most Gikomba traders did not understand the administration and actually saw the tax computation as very tedious and complicated. Tax amount were not collected in a timely manner and that enforcement powers of the staff was applied injudiciously. The study concluded that Kenya .Revenue .Authority need to fully utilize the established channels to educate the traders on importance of proper accounting systems and tax compliance. Simplifying registration of businesses would enable majority of the small enterprise operators to comply with tax payment making it easy for adoption of turnover tax.

Full Text PDF Format


Publication Disclaimer: The accountability of the article published in IJSSE journals is entirely of the author(s) concerned and not of the publisher/editor. The view expressed in the articles of any IJSSE journal is those of the contributors, and it does not essentially correspond to the views of the publisher/editor. It is responsibility of the authors to seek copyright clearance for any part of the content of the articles. The publisher/editor of IJSSE journals is not liable for errors or any consequences arising from the exercise of information contained in it.
Free counters!
IJSSE - International Journal of Social Sciences and Entrepreneurship | Copyright 2013 | All Rights Reserved  <