Determinants of value added tax revenue in Kenya

Abstract. Past studies that have been undertaken on the responsiveness of Value Added Tax revenues to changes in GDP in Kenya have found a positive relationship. However, the studies omit key determinants of tax revenues, such as the nature of the tax system, institutional, demographic and structural features of the economy. Due to this omission, the estimated income elasticities are unreliable for planning purposes, a situation that might be responsible for the recurring budget deficits. The specific objectives of thepaperare to establish the determinants of Value Added Tax revenue and assess yields responseto changes in bases and reforms. The paper uses Paul Samuelson's (1955) the paper are fundamental general equilibrium analysis of the public sector to derive its main results. The estimation results show that GDP elasticity is less than the elasticities with respect to monetary GDP, suggesting the existence of an underground economy. It is also found that tax yields respond with substantial lags to changes in its determinants and revenues are sensitive to reforms and unusual circumstances. The study concludes that Kenya’s Value Added Tax revenue is very responsive to changes in its determinants especially international trade. There is the challenge of creating a stable Value Added Tax system.Keywords. Tax revenue, Elasticity, Tax system, Underground economy, Unusual circumstances.JEL. H25, H24, H27

The Effect Of Direct And Indirect Corrective Feedback Taking A Sociocultural Approach

Debate on the effectiveness and usefulness of written corrective feedback has centered on Truscott\u27s 1996 article that placed a strong case against grammar correction as ineffective and harmful and therefore should be abandoned. A growing body of research has proved the value of judicious and purposeful error correction and has also put forward guidelines to guide such pedagogy. The second language acquisition process is deemed to be a very complex and slow process. Therefore it is paramount that corrective feedback be structured according to an individual learner\u27s linguistic ability. Contributing to this research base, this study investigated whether there is an effect of the type of feedback (direct and indirect corrective folloby a 15 minute one-on-one tutorial session) administered within a learner\u27s zone of proximal development on the past progressive verb form and to find out whether this resulted in improved linguistic accuracy. Fourteen high intermediate L 2 learners from a university south of America formed a control group and two treatment groups. They were tested two times on two controlled and two times on free writing activities that elicited the use of the past progressive verb form. The study also examined students\u27 reactions to feedback structured in a sociocultural framework through response to six point Likert questionnaires. The study did not find a statistical significance on the effect of direct and indirect corrective feedback structured within the ZPD on the students\u27 accuracy. Despite a lack of a statistical proof the results suggest that indirect corrective structured within the ZPD is superior to direct corrective feedback structured within the ZPD. The results of the questionnaire indicated that students appreciate and prefer feedback structured within the sociocultural framework. The results shothat they value feedback as a dialogic process and would like it to be conferred individually by a more knowledgeable peer. They appreciate it if their teachers focus on one type of error at a time and also if assistance is withheld once they achieve autonomy. Lastly, they indicated that they should be alloenough time to internalize the errors that are being corrected or to internalize the mediational means

English-Swahili Code Switching: An Intersection between Stance and Identity

The current study seeks to answer the questions of how and why bilinguals code switch as this are the essential questions that need to be addressed when looking at linguistic patterns of bilinguals. This study also incorporates stance, as a great tool for analysis of ways in which we can predict motivations for CS in bilinguals. In an endeavor to explain the language patterns in English-Swahili bilinguals in Memphis and Tallahassee Florida in the United States of America. The following study address how and why bilinguals code switch, and how different stance taking measures brings out the speaker identities. The study mainly focuses on the intersection between CS, stance and identity to attempt to give an explanation of CS behavior in bilinguals. Three hours of recorded conversations was used for the study. Subsequent to conversational analysis the study addresses how and why people code switch and kind of stances bilinguals take up to construct their identities. From the study it was found out that bilinguals use situational and metaphorical switching to exhibit how they switch and they switch for purposes of quotations, solidarity and to communicate culturally specific information. On the other hand, further results indicate that CS and stance taking are linguistic practices that enable speakers to construct, reconstruct and negotiate their temporary and permanent identities

Free Primary Education in Kenya and its challenges in fighting Illiteracy

For a country to realize full economic potential education is paramount. A population with ability to read and write compounded with technology savvy is key ingredients for growth. One of the pillars identified in the MDG is among others universal primary education for all. It is within this pretext that the government of Kenya introduced free primary education in Kenya. The main aim of introducing free primary education was to fight illiteracy; five years down the line a lot of facts still have to be addressed so that the appropriate scheme could be addressed in real time to fight the real problem at hand. Though a noble gesture, it has had its share of challenges and pitfalls. The current study highlights the challenges of free primary education in fighting illiteracy. Some of the challenges identified included Under Staffing, Poor working conditions, inadequate funding, Kenya's primary Education system and acquisition of literacy and Lack of school libraries. The study concludes that a clear policy on FPE implementation that defines the roles and responsibilities of different stakeholders must be stipulated. For the program to succeed there must be continuous dialogue with stakeholders such as parents, school committees, and local communities to inform them from the onset of their specific roles in supporting the policy

EFFECTS OF COLLECTIVE ACTION ON PERFORMANCE OF WOMEN-OWNED MANUFACTURING ENTERPRISES IN SELECTED COUNTIES IN KENYA

Micro, Small, and Medium Enterprises (MSMEs) are imperative in boosting manufacturing in Kenya. Stakeholders including the government have advanced initiatives to promote MSMEs by providing affordable loans and developing policies to help them thrive. Despite these efforts, there is sluggishness in the way manufacturing enterprises owned by women perform. Collective action could be employed to reverse this situation considering that most women are good at networking. This study’s objective is to determine the effect of collective action on the performance of women-owned manufacturing enterprises. The study uses the primary data collected by interviewing 55 women who owned enterprises. The women were selected through a simple random sampling technique and a structured questionnaire administered. This data was complemented by published data from government policy documents. Descriptive statistics, correlation, and regression analyses were done to establish the degree to which collective action influenced how women-owned manufacturing enterprises performed in Kenya. Spearman’s Rank correlation analysis established that collective action was strongly and positively correlated with the performance of women-owned manufacturing enterprises. This was further investigated through regression analysis and it was found that collective action positively affected those enterprises' performance. The study recommends that women who own enterprises in the manufacturing sector should embrace networking through belonging to a group(s) or business organization(s) in order to improve the performance of their enterprises.JEL: L25; J16; D70  Article visualizations

EFFECTS OF FINANCIAL SOURCES AND SOCIO-CULTURAL FACTORS ON PERFORMANCE OF WOMEN-OWNED MANUFACTURING ENTERPRISES IN KISUMU CITY COUNTY, KENYA

Women-owned enterprises play a significant role in contributing to a country's Gross Domestic Product (GDP) by creating employment opportunities. However, the manufacturing sector in Kisumu City County, has witnessed poor performance, coupled with less than 10 percent of the women participating in this sector. Despite this poor performance and low participation rate, there has been limited exploration into the factors influencing the performance of women exclusively within this sector. Therefore, the study aimed to determine the effects of financial sources and socio-cultural factors on the performance of women-owned manufacturing enterprises. The study employed a descriptive research design. Data was gathered through a questionnaire administered to 48 women selected using a simple random sampling technique. Descriptive and inferential statistics were applied to analyze the data using Excel and STATA Software. The results of multiple regression analysis established that women who secured funding from banks during shortages and initial capital depicted high performance. Additionally, factors such as household size, spousal decision-making regarding property utilization, and spousal control over the enterprise earnings had a negative effect on the performance of women-owned manufacturing enterprises in this County. Top of FormThe study recommends that policies need to be formulated to finance informal sectors such as Chamas where the majority of women prefer to increase the amount of loan accessed. Additionally, women should acquire more advanced entrepreneurial skills that are instrumental in making independent decisions and having better control over productive resources without utterly relying on their spouses. JEL: L60; M10  Article visualizations

Trustee Related Determinants of Scheme Design in Occupational Defined Contribution Schemes in Kenya

This paper aims to provide an understanding of trustee related determinants of scheme design in occupational defined contribution schemes (ODCS) in Kenya. ODCS involve no promises about the size of the benefits and no risk to the employer. The risk of ending up with low or no benefits falls entirely on the scheme members. It is necessary therefore, that determinants of scheme design are carefully considered in establishment and review of defined contribution schemes to deliver adequate benefits to members. Based on modern portfolio and the life cycle theories, the study investigated the key trustee related determinants of scheme design in ODCS in Kenya. Primary data were collected using a questionnaire administered to scheme administrators in the sample. Descriptive statistics were used to profile respondents, describe sample characteristics and a logistic econometric model was applied to evaluate the trustee related determinants of scheme design. The study showed that the key trustee related determinant of scheme design was investment strategy. From the findings, it was recommended that trustees should in addition consider investment returns, target pension, charges by service providers and annuity rates in designing schemes. This would guarantee members a reasonable standard of living after retirement. Keywords: Scheme Design, Occupational Defined Contribution Schemes, Trustees

Employer Related Determinants of Scheme Design in Occupational Defined Contribution Schemes in Kenya

This paper aims to provide an understanding of employer related determinants of scheme design in occupational defined contribution schemes (ODCS) in Kenya. ODCS involve no promises about the size of the benefits and no risk to the employer. The risk of ending up with low or no benefits falls entirely on the scheme members. It is necessary therefore, that determinants of scheme design are carefully considered in establishment and review of defined contribution schemes to deliver adequate benefits to members. Based on modern portfolio and the life cycle theories, the study investigated the key employer related determinants of scheme design in ODCS in Kenya. Primary data were collected using a questionnaire administered to scheme administrators in the sample. Descriptive statistics were used to profile respondents, describe sample characteristics and a logistic econometric model was applied to evaluate the employer related determinants of scheme design. The study showed that the key employer related determinants of scheme design were the employer’s budgetary constraint and recognition of the length of service of scheme members. From the findings, it was recommended that employers should in addition consider pensionable salary, retirement age and occupation in designing schemes. This would guarantee members a reasonable standard of living after retirement. Keywords: Scheme Design, Occupational Defined Contribution Schemes

Ranking as a Predictor of Academic Inferiority Feelings Among Form Three Students in Kisii County, Kenya

A lot of research has been done on the relationship between ranking and academic performance among students. However, the literature done is scanty on the relationship between ranking and academic inferiority feelings. The main aim of this study was therefore to investigate relationship between ranking and academic inferiority feelings among students who do not perform well. Alfred Adler’s theory of individual psychology forms the theoretical framework of the study. The study adopted a mixed methods sequential explanatory research design. It was carried out in Kisii County, Kenya. The target population was all the Form Three students in public schools in Kenya. Proportionate stratified sampling was used to select the top, average and low-ranking schools in the county. It was further used to stratify schools into boys’ boarding, girls’ boarding, mixed boarding, mixed day and boarding and mixed day schools. Simple random sampling was used in the selection of the 400 respondents. The sample consisted of 400 students selected from 20 schools. The research instruments were questionnaires and an interview schedule for the students administered by the researcher. Personal and academic self-concept inventory (PASCI) was used to collect data on academic inferiority feelings. A researcher developed questionnaire was used to collect data from students on ranking. A pilot study was used to validate and ensure reliability of the research instruments. Both descriptive and inferential statistical procedures were used to analyze data with the help of Statistical Package for Social Sciences (SPSS) version 20. The results were presented using frequency tables. The results showed that there was a relationship between ranking and academic inferiority feelings with most of the respondents having moderate feelings of academic inferiority i.e.,72.9%. Sex differences were evident in the study where boys experienced a higher level of academic inferiority feelings with a mean of 67.11as compared to girls who had a mean 65.08. A major recommendation of the study was that the ministry of education should try to do away with ranking totally more so within school ranking which could make the students feel academically inferior

Impact of ripening stage and drying on selected quality attributes of apple mango cubes and leathers

Apple mango is an improved cultivar that has been widely adopted by farmers in Kenya for use in the fresh market and processing. However, its production and consumption are adversely affected by high postharvest losses, which result from the perishable nature of the fruit, especially during glut periods. This is partly due to limited availability of information on alternative product use. The aim of this study was to evaluate the impact of ripening stage and drying on the physico-chemical quality and sensory acceptability of Apple mango fruit grown in the upper Athi River region of Kenya. Moisture, crude ash, crude fibre, titratable acidity, total soluble solids, colour, total carotenoids and ascorbic acid of the unripe and ripe fresh mangoes were determined. Subsequent experiments involved drying of ripe and unripe mango cubes (8mm) in a windy oven (at 60°C) and, in parallel, drying of ripe mango puree (mixed with sucrose-glucose solution, citric acid and pectin) in a windy oven at three different temperatures (50, 60 and 70°C) which resulted in mango leathers. Analysis of total carotenoids, ascorbic acid content and colour was done for all dried samples, followed by sensory evaluation using the nine-point hedonic scale. The moisture content, crude ash and total soluble solids increased significantly (P<0.05) with ripening while titratable acidity decreased significantly (P<0.05). Ascorbic acid content decreased from 98.03 to 86.45 mg/100g with ripening while total carotenoids content approximately doubled from 768 to 1436 μg/100g. Drying resulted in high retention of total carotenoids, whereas, ascorbic acid content decreased. The mango samples became darker and redder in all cases. Dried mango cubes and leathers derived from ripe mangoes had higher scores in the sensory analysis compared to those obtained from unripe mangoes. In conclusion, the stage of ripening and drying technique employed are critical in determining the nutritional and sensory characteristics of dried Apple mango cubes and leathers. Drying Apple mango leathers at 60°C is the best method that can be adopted.Keywords: Apple Mango, Drying, Ripening, Fruit Leather, Fruit Cubes, Physico-chemical, Sensor