The Effects of voluntary tax disclosure programme on improving tax compliance and revenue generation - a case study of Nairobi County

Full - text thesisKenya's Voluntary Tax Disclosure Programme (VTDP) was implemented to address the challenge of undeclared income and assets, offering amnesty and incentives for voluntary disclosure. This study analyzes the effectiveness of VTDP in enhancing tax compliance and its cost-benefit implications since its inception. Specifically, the study aimed to analyze how VTDP has improved tax compliance; to establish the cost of benefit analysis of VTDP by examining how much tax revenue has been collected versus how much has been waived since the implementation of the program; and to relate the VTDP with the tax revenue collected and the revenue trends before, and after the program. Using secondary panel data from 2018 to 2023 sourced from the Kenya Revenue Authority, the study employed difference-in-difference (DID) analysis, mean comparison tests, and fixed effects models to achieve its objectives. The findings indicated a significant positive association between VTDP and tax compliance, with an approximately 11.77% increase in compliance per unit increase in VTDP. Mean comparison tests revealed that collected tax revenues exceeded waived amounts, demonstrating the program's effectiveness in enhancing revenue generation or taxpayer compliance. DID regression analysis showed statistically significant increments in revenue, with a 2% increase in 2021, followed by 2.2% in 2022, and 2.3% in 2023. These results were supported by average treatment effect on the treated (ATET) analysis, affirming VTDP's positive impact on revenue outcomes. The findings of this study provide valuable insights into the effectiveness of Kenya's VTDP in enhancing tax compliance and revenue generation. The significant positive association between VTDP and tax compliance underscores the importance of voluntary disclosure programs in encouraging taxpayers to comply with their tax obligations. Additionally, the cost-benefit analysis revealed that the revenue collected through VTDP exceeded the waived amounts, indicating a positive return on investment for the government. The DID regression analysis further supported these findings, showing statistically significant increments in revenue following the implementation of VTDP. These results have important policy implications for tax authorities in Kenya and other developing countries facing similar challenges of tax evasion and non-compliance. It is recommended that the government expands existing VTDPs and actively promotes them through outreach programs, advertising campaigns, and partnerships with tax professionals and business associations. By doing so, the government can further enhance tax compliance and revenue collection, ultimately contributing to the country's socio-economic development. Additionally, future research could explore the long-term effects of VTDP on taxpayer behavior and the overall tax system in Kenya

Determinants of private health insurance demand: a case of insurance companies in Kenya

Full - text thesisHealth insurance is an important tool for promoting health and reducing the burden of healthcare costs for individuals and households. In Kenya, health insurance coverage remains low, with only about 20% of the population covered. This study aims to investigate the factors influencing private health insurance demand in Kenya, with a focus on the effects of education, employment status, and household disposable income. This study is anchored on the Grossman's model of healthcare demand and also leans on the Nyman’s model of private health insurance. Nyman's model emphasizes the role of income and price elasticity in determining healthcare demand, while Grossman's model proposes that an individual's health investment decisions are influenced by their human capital, time preference, age, environmental factors, and expected benefits of investing in health. The study adopted a longitudinal survey design, utilizing secondary data from various sources including the Kenya National Bureau of Statistics, the Insurance Regulatory Authority, and the World Bank Development Indicators. The data covered the period from 2002 to 2022, allowing for the analysis of trends and changes in health insurance demand over time. Descriptive statistics were used to summarize the data and examine the distribution of health insurance coverage across educational levels, employment statuses, and income levels. Linear regression analysis was conducted to determine the relationship between health insurance demand and the independent variables of education, employment status, and household disposable income. Using the F-Statistic and R-squared the research concluded that education level, unemployment rate, and household disposable income jointly influenced health insurance demand significantly. Education was not a significant determinant, contrary to expectations and previous research. On the other hand, unemployment rate and household disposable income played crucial roles in shaping health insurance demand. A notable limitation of this study was the confined time frame. This limitation arose from the unavailability of data for the years preceding 2002 for certain data series

The Factors affecting adoption of electric vehicles by public service vehicle matatu SACCOS in Nairobi City County, Kenya

Full - text thesisThe adoption of electric vehicle innovation is something whose time has come given the rising climate and environmental concerns. Its adoption, however, faces numerous challenges, especially in Kenya and other developing countries. The study investigated the variables that impact Kenya’s adoption of electric vehicles. The study purposed to establish the influence of cost of electric vehicles, infrastructure development, and knowledge on the adoption of electric vehicles by public service vehicle matatu SACCOs in Nairobi. The technological acceptance model and diffusion of innovation theories underpinned the study. The study made use of the descriptive cross-sectional survey approach to achieve this. The study targeted 272 PSV matatu SACCOs in Nairobi City County. The data was gathered using a structured questionnaire which was administered at the offices of PSV matatu SACCOs within Nairobi. Data analysis involved descriptive statistics in form of means and standard deviation and inferential statistics in form of correlation, simple and multiple linear regression analyses. Spearman's correlation revealed that infrastructure development had a strong and positive correlation with the adoption of electric vehicles by public service vehicle matatu SACCOs in Nairobi (r=0.463, p=0.000<0.05), moderate correlation between knowledge and adoption of electric vehicles by public service vehicle matatu SACCOs in Nairobi (r=0.376, p=0.000<0.05). The cost of electric vehicles had a negative correlation with adoption of electric vehicles by public service vehicle matatu SACCOs in Nairobi (r=-0.459, p=0.000<0.05). Multiple linear regression results showed that knowledge, infrastructure development, cost of electric vehicles explain 53.3 percent adoption of electric vehicles by public service vehicle matatu SACCOs. Regression coefficients showed that infrastructure development has a positive and statistically significant relationship with the adoption of electric vehicles by public service vehicle matatu SACCOs (β=0.157, p=0.000<0.05), knowledge also showed a positive and statistically significant relationship with the adoption of electric vehicles by public service vehicle matatu SACCOs (β=0.233, p=0.000<0.05). The cost of electric vehicles (β=-0.075, p=0.002<0.05) indicated a negative and statistically significant relationship between cost of electric vehicles and the adoption of electric vehicles. The study concludes that cost of electric vehicles, knowledge and infrastructure development are crucial determinants in the adoption of adoption of electric vehicles by public service vehicle matatu SACCOs. The study recommends government intervention to reduce costs, improve infrastructure, and create more awareness through policy development. The study recommends further studies examine other factors apart from the three identified factors; cost, infrastructure development, and knowledge that might influence the adoption of electric vehicles. A study should also be done to examine the influence of policies and rules on the adoption of electric vehicles. Key words: knowledge, infrastructure development, cost of electric vehicles, public service vehicle matatu SACCOS, Nairobi City Count

The Challenges of access to and use of digital financial services by women in Homa Bay County, Kenya

Full - text thesisThis study examines the background of Digital Financial Services (DFS) situation for women, specific emphasis on the challenges that inhibit women from efficiently using DFS to enhance finance freedoms in Homa Bay County. Limited access to appropriate financial services is one of the key challenges that prevent economic participation of women. Furthermore, female headed households are more likely than male-headed households to be poor due to limited economic opportunities. Digital financial services contribute to the expansion of financial inclusion of women, but in some countries, it is disproportionate, and even though access to finance for women is rising, the gender gap is still persistent. In Kenya, two-thirds of unbanked adults are women and the most significant barrier to women’s financial inclusion being access to and use of their assets to earn independent income (Demirgüç-Kunt et al, 2018.). Anchored on Unified Theory of Acceptance and Use of Technology (UTAUT) and Diffusion of Innovation (DoI) theories, the study highlights the challenges experienced by women and how these reflect on their financial decisions and the fundamental societal norms leading to these challenges. Mobile coverage and online bank usage as the primary representation of DFS usage, with data collected in the year 2023 via a study of selected women respondents in Homa Bay county. The data analysed using descriptive and inferential statistics and the findings were that women in Homa Bay County own digital devices, they had a good understanding of basic use of the digital devices and use digital financial services. Inferential analysis showed that differences in access to and use of DFS by women in the study area was due to variations in their digital financial literacy, with the women with a good comprehension of digital financial literacy being quite comfortable in its use and enjoyed using their devices. Socio-cultural norms did not establish a distinct effect on the nature of DFS services utilization apart from explaining number of daily logins. There were mixed relationships between perceived trust and risk against DFS use with a higher perception of doubt and reservation in the use of digital devices associated with lower logins. Perceived ease of use was associated positively with DFS usage, thus intimating that, women in Homa Bay County had a relatively high level of ease of use of digital financial services

Assessing factors influencing adoption of Artificial Intelligence in audit of public entities in Kenya

Full - text thesisThe current digital era, industrial 4.0 and surge of financial transactions leading to a deluge of data has complicated the work of contemporary auditor rendering traditional auditing methodologies inadequate. This has birthed Artificial Intelligence (AI) with capacity to match the transmuting nature of fraud. As other professions rush to benefit from AI, auditing has lagged behind with low levels among the big four that includes Deloitte, PricewaterhouseCoopers, Ernst & Young and Klynveld Peat Marwick Goerdeler. Key stakeholders such as professional bodies and Supreme Audit Institutions are under pressure to include risk in audit an arduous task for auditors using traditional methodologies compelling exploration of robotic auditors born from AI. However, the desire to espousal remains low with several factors considered as encouraging or stifling the process. The purpose of this study was to assess factors influencing the adoption of AI in audit of public entities in Kenya. The specific objectives were to determine the influence of technological, organizational and environmental factors guided by Technology Organization Environment (TOE) framework and Diffusion of Innovation (DOI) theory. It targeted all the active audit personnel in the Office of Auditor General (OAG) who is the principal government auditor in Kenya. Simple random sampling was used to select 333 auditors to participate in the study with structured questionnaire to collect data. Validity and reliability of the research instrument was ascertained in a trial study. Data was analysed using both the descriptive and inferential statistics riding on Statistical Package of Social Sciences (SPSS). Descriptive statistics included percentages, means and standard deviations, while the inferential included the multinomial logistic regression, spearman rank correlation and factor analysis. Tables and figures were used in data presentation. The results revealed that technological, organizational and environmental factors positively influence the low adoption of AI in audit of public entities in Kenya with odds ratios that are higher than 1. Organizational factors showed a slight edge over technology, which came second with environmental factors scoring least. However, they collectively accounted for 86.170% of factors that influence adoption of AI in audit of public service entities. To overcome the limitation in smart auditing, the study recommends stakeholders to focus on addressing the factors associated with adoption to match the emerging challenges in the wake of torrential flow of transactional data

Company characteristics of early adopters of Environmental Social Governance disclosures on the Nairobi Securities Exchange

Full - text thesisThe ESG concept brings together environmental, social, and governance issues in businesses. The concept of Environmental, Social, and Governance (ESG) reporting is gaining increasing attention in the global business community. ESG disclosures refer to a set of voluntary non-financial disclosures made by companies to provide stakeholders with information on their environmental, social, and governance performance. This research aimed to explore the characteristics of firms that are early adopters of ESG disclosures on the Nairobi Securities Exchange (NSE) in Kenya. The Central Bank of Kenya in 2021 introduced regulations requiring financial institutions to adopt climate risk guidelines to foster sustainable finance practices in the banking sector. Following this the Nairobi Securities Exchange developed guidelines on ESG disclosures for use by all NSE listed companies at least annually, with mandatory reporting beginning twenty ninth November 2022. Reporting has lagged at fourteen percent of NSE listed firms even five months past the mandatory deadline. The research had three objectives, namely - identify the firm characteristics that make firms early adopters of ESG disclosures, analyze the motivations and incentives behind firms' decisions to adopt ESG reporting practices, and assess the challenges and barriers faced by firms in adopting and implementing ESG reporting practices in Kenya. The research provided current practice information and discerned approaches to enhance compliance. The research utilized a mixed-method approach methodology, which combined both quantitative and qualitative data collection and analysis methods. The quantitative research methods involved collecting financial data and analyzing the relationship between ESG reporting and firm characteristics using regression analysis. The qualitative research methods involve questionnaires to key stakeholders to gain insights into the motivations and challenges associated with ESG reporting. The target population for the study was the listed firms in the Nairobi Securities Exchange already adopting ESG disclosures before the November 2022 deadline. The researcher used a pre-designed questionnaire for primary data collection which was administered online through use of google docs because of the high response rates associated with the approach. The researcher also used secondary data derived from published annual reports of the listed companies to complement the primary data. Before the commencement of the data collection, there was a pilot study done by the researcher to test the study tool and validate it. Correlation analysis was used to examine the inter-relationship between the independent and the dependent variable. Regression analysis was used to examine the impact of the independent variables on the dependent variable and to identify the most significant predictors of early adoption of ESG disclosures. The findings of the research provided a better understanding of the drivers of ESG adoption and the challenges that firms encounter in implementing ESG reporting practices in Kenya. The research conclusions contributed to the development of policies and strategies that encourage ESG reporting among firms and improve the overall quality of ESG reporting in Kenya

Clinical errors—the unclassified diagnosis; application of TeamSTEPPS tool to examine the impact of teamwork on clinical errors at Gulu Hospital

Full - text thesisClinical error continues to highlight the shortcomings of the healthcare system, particularly the Healthcare ergonomics and the human system. If it were to be a disease, it would rank the third-leading cause of deaths in the population. They are latent or active events that occur as a result of structural, process, or outcome-based actions ranging from failing of an action on intended objective to using erroneous policy, procedures, processes, and practices in patient care. Healthcare institutions are investing significant resources to reduce the incidence and severity of clinical errors in patients through collaborative team structures and effective communication in order to promotes safe, patient-centred, and equitable healthcare. However, in Uganda and elsewhere the notion of teamwork to reduce clinical error incidence and severity have been low due to poor safety culture, punitive leadership, poor communication ethics, and lack of mutual team support. This study aimed to examine how team structures, leadership and management, mutual support, and communication impacts on the incidence and severity of clinical errors at Gulu Hospital. The study was anchored on two theories and models: Human Error and system error theories and TeamSTEPPS Model and System Engineering Initiatives for Patient Safety (SEIPS). A mixed-method cross-sectional study design using structured and unstructured questionnaires developed from the Team Strategies and Tools to Enhance Performance and Patients Safety (TeamSTEPPS) framework were used to collect primary and secondary data. The collected data were analyzed using Spearman’s Rank Correlation in SPSS Version 10. The result showed that conflict management and effective team communication significantly improves clinical error reporting, resolution, and deaths, however, no significant relationship with team structures, team leadership, and mutual team support. Furthermore, the findings showed clinical error deaths are not significantly related to the different teamwork themes studied except team conflict management. In conclusion, though clinical error is not a classified diagnosis by standard, the results indicate that teamwork may reduce the incidence and severity of clinical error at Gulu Hospital. The study recommends hospital, policy institutions, and healthcare providers to embrace teamwork as an innovative approach to strengthen team collaborations especially in promoting quality of care and patient safety culture in healthcare

An Assessment of the factors influencing the implementation of revenue automation process of Nairobi County, Kenya

Full - text thesisSince the inception of the devolved system of governance, county governments have been grappling with revenue mobilization challenges. These challenges in collecting adequate revenue have resulted in increased shortcomings in meeting development and recurrent expenditure. This has necessitated the county governments to churn out traditional methods of revenue collection and management for a more robust automated system. However, to date despite the County Government of Nairobi, having three different leaders, the implementation of an automated revenue systems has been an elusive undertaking plagued by inconsistencies in implementation, continuous wrangles and lack of user acceptance. As such it’s imperative to have a deeper understanding of what leads to this persistent failure in the revenue automation process. Hence, this study sought to conduct an assessment of the factors influencing the implementation of revenue automation process of Nairobi County, Kenya. By doing so, this research was able to recommend possible measures and strategies that can equip the county governments in pursuing revenue automation process. Specifically, the study examined effect of policy factors, governance factors and human resource factors and how they influence the implementation of revenue automation process of Nairobi County, Kenya. The research applied a descriptive research design that was anchored on a pragmatism philosophy, and guided by the institutional theory and the diffusion of innovations theory. The population for the study was 94 employees within Nairobi County Government Revenue Administration Department. A census sample was obtained for this research. The research instrument was semi-structured in nature with open-ended questions and Likert scale statements. The research tool was pretested among 10% of the sample respondents who were not allowed to participate in the final data collection. The collected study data was analyzed using quantitative and qualitative approaches with findings presented in charts, bar graphs and tables. The research obtained 84% response rate which was considered sufficient for generalization of the results of the study. Regression findings showed that governance, human resource and policy factors lead to positive change in the implementation of revenue automation process in Nairobi County. The study concluded that policy and human resource factors do have a positive and significant effect on the implementation of revenue automation process in Nairobi County while governance factors did not significantly contribute to the automation process. The study recommends that the local governments ensure the develop relevant and up to date policies that can adequately address user’s expectations and their concerns, especially with regards to its impact on the employees’ jobs and ability to execute their duties. The study calls for regular, organizational and individual-specific IT skills competency building, professional development, and training as well as use of up-to-date performance metrics when rewarding and remunerating staff who play essential roles in the implementation of automated systems

Effect of company specific characteristics on the adoption of emerging technologies in finance functions: case of non-financial companies listed in Kenya

Full - text thesisOver the past decade, corporations have taken advantage of low-cost and efficient technologies to automate their finance departments in a bid to gain a competitive advantage through lowering administrative overheads, improving risk management, and ensuring that data that is required for decision-making by business leaders is provided on a real-time basis to ensure quick decision making. The study aimed to assess the level of usage of emerging technologies in the finance function of listed non-financial companies in the Nairobi Securities Exchange (NSE), identify company features and the type of emerging technologies adopted, and identify opportunities for the application of emerging technologies and challenges that hinder the adaption of the emerging technologies. Leveraging the Diffusion of Innovation Theory and Technology Organization Environment Theory, data on company characteristics was collected from primary data sources through a questionnaire administered to the Chief Finance Officers and secondary data from audited financial statements of 34 listed non-financial companies to assess the influence of company characteristics on the adoption of emerging finance technologies through the use of a binary logistic regression model. The findings indicated that the level of usage of emerging technologies in the finance function of listed non-financial companies in the NSE is at the initial phase of development with 21.7% of the companies having adopted the use of emerging technologies. The binary logistic regression model analysis found that company profitability, ownership concentration and ownership concentration and CFO tenure had a negative, relationship with the adoption of emerging finance technologies whilst company liquidity, size age, board independence, number of employees in the finance department, and CFO age had a positive relationship with the adoption of emerging finance technologies and none of the independent variables had a significant relationship with the adoption of the emerging finance technologies. The study also revealed a significant lack of enthusiasm among listed non-financial companies to identify opportunities for adopting emerging finance technologies, citing challenges such as insufficient IT infrastructure, limited awareness of functionalities, and a skills gap, and recommends that Companies invest in foundational tools and necessary talent to reap the potential benefits. This research contributes to the literature on technological innovation and breaks new ground by focusing on non-financial companies listed on the NSE

Assessing the factors influencing the adoption of off grid renewable energy technologies in Kenya - a case for Kisii County

Full - text thesisDeveloping resilient energy systems is imperative for enhancing electricity accessibility, mitigating greenhouse gas emissions, and improving the welfare of residents in remote areas. However, many Sub-Saharan Africa countries with inadequate national power distribution systems often overlook energy provision in remote settlements due to their geographical isolation, low electricity demand, and limited financial resources. This study addresses the critical factors surrounding the low uptake of Off-Grid Renewable Energy Technologies (OGRETs) in Kisii County, Kenya, aiming to assess the constraints households face in adopting these technologies. Anchored in the Technology Acceptance Model (TAM) and the Diffusion of Innovation theory, the research investigates how technological characteristics, socioeconomic conditions, environmental considerations, and psychosocial factors influence the adoption of OGRETs. The study is aligned with Sustainable Development Goal 7 (SDG7) and aims to contribute to meet the Kenya's Vision 2030 and climate change agenda by tackling the slow progress towards universal energy access. Utilizing a cross-sectional survey employing structured questionnaires incorporating the TAM framework with Likert scale responses, data were collected from a sample of 400 households. Analysis involved inferential statistics and a multiple regression. The findings highlight environmental concerns as a significant driver of adoption, with higher levels of concern positively associated with increased adoption. Additionally, risk and trust, awareness levels, relative advantage, and ease of use displayed significant positive associations. However, initial cost and financial incentives showed minimal impact. Policymakers should prioritize implementing targeted financial incentives and support mechanisms, alongside comprehensive awareness campaigns, to promote OGRET adoption in Kisii County, Kenya. Keywords (Energy access barriers, renewable energy adoption, renewable energy technologies, off-grid, Technology Acceptance Model, sustainable energy, energy access