Relationship between Income Size, Inspection and VAT Compliance: Evidence from Private Firms in Kenya

Many developing nations in around the globe, Kenya included are struggling with the problem of tax non-compliance by the taxpayers. In Kenya, the problem of tax non compliance among business firms constrains the realization of revenue collection targets by Kenya Revenue Authority (KRA). This study aimed at investigating the relationship between the size of taxpayer’s income, inspection by the tax authorities, use of tax registers and VAT compliance. A sample of 233 registered firms was selected and data collected using self administered questionnaires to personnel in finance department of the selected firms. The data was analysed both descriptive and correlation analysis. The study revealed that VAT non compliance is high among the middle-income business firms and that Inspection of business firms by tax authorities had a slight positive relationship with VAT compliance (r =0.15, p<0.05) The study revealed that effective and regular use of Tax Registers had a significant positive relationship with VAT compliance (r = 0.622, p<0.05). The study recommends that stringent compliance measures and close monitoring should be observed among the mid-sized private firms. Tax authorities should also encourage effective use of tax registers through regular but impromptu inspections.Key words; Tax compliance, Value Added Tax, Keny

Determinants of Pension Schemes Governance Effectiveness: A Case of Kenya Medical Research Institute (KEMRI)

Retirement Funds Industry plays an important role in boosting economic growth and accelerating domestic savings in many countries. In Kenya, the retirement regulation body compliance based supervision in regulating the Pension industry. Despite this effort, there is a growing concern that some Schemes still experience serious credibility problems due to poor governance. This study sought to assess the determinants of effective pension schemes governance in Kenyan: A survey of KEMRI pension scheme was conducted where a sample of 50 respondents out of the population of 502 employees of the organization using purposive sampling technique. The study established that knowledge of the trustee‟s covenants by the members, information flow to members and participation of members in the governance of pension schemes are the main factors that influence effectiveness of governance of pension schemes. The KEMRI Pension Scheme Trustees‟ governance score card on their covenants was below average with 65.4% respondents giving it a poor rating. The study recommends that Trustees should establish a formal governance policy for decision making; enhancing information flow to members; and undertake an assessment of the skills and knowledge of Trustee. Keywords: Pension schemes, KEMR

Mapping Nairobi's dairy food system: An essential analysis for policy, industry and research

Demand for dairy products in sub-Saharan Africa, is expected to triple by 2050, while limited increase in supply is predicted. This poses significant food security risk to low income households. Understanding how the dairy food system operates is essential to identify mitigation measures to food insecurity impact. This study aims to determine the structure and functionality of Nairobi's dairy system using a value chain mapping approach

Detection of the spotted wing drosophila, Drosophila suzukii, in continental sub-Saharan Africa

The spotted wing drosophila, Drosophila suzukii Matsumura, is an insect pest of soft-skinned fruit, native to Eastern Asia. Since 2008, a world-wide dispersal of D. suzukii is seen, characterized by the establishment of the pest in many Asian, American and European countries. While the potential for invasion of continental Africa by D. suzukii has been predicted, its presence has only been shown for Morocco in Northern Africa. Knowledge about a possible establishment in other parts of the continent is needed as a basis for pest management. In 2019, we carried out a first survey in three counties in Kenya to monitor for the presence of D. suzukii using traps baited with a blend of apple cider vinegar and red wine. A total of 389 D. suzukii flies were captured in a fruit farm at Nakuru county, with more female flies being trapped than males. We confirmed the morphological identification of D. suzukii using DNA barcoding. In 2020, we performed a follow-up survey at 14 locations in six counties to delimit the distribution of D. suzukii in the main berry growing zones in Kenya. The survey indicated that so far D. suzukii is restricted to Nakuru county where it was initially detected. This is the first study to provide empirical evidence of D. suzukii in continental sub-Saharan Africa, confirming that the pest is expanding its geographic range intercontinentally. Given the high dispersal potential of D. suzukii, a concerted effort to develop management strategies is a necessity for containment of the pest

Credit and Debit Card Usage and Cash Flow Management Control by Customers: Evidences from Commercial Banks Customers in Kisumu City, Kenya

In the recent past, the banking sector in Kenya has witnessed a rapid growth, issuing thousands of credit cards and millions of debit cards to their customers. The frequency in which customers use these cards for various transactions raised concerns of whether customers had lost control over their finances. Previous studies on this area have provided very little understanding on the impact of use of debit and credit cards on customers‟ cash flow management control. This study sought to determine the extent of use of debit and credit cards in cash deposits, withdrawals and purchase transactions at retail outlets and to determine its effects on cardholder‟s cash flow management. Data was collected through a structured questionnaire administered to a sample of 35 debit and credit cardholders each, drawn from customers of 7 main commercial banks in Kisumu city, Kenya. The study revealed that both debit and credit cards usage increases cash outflows compared to cash inflows and that use of these cards has increased consumption levels as opposed to investments. As a premier study in Kenya, this study will greatly help in the understanding of the impact debit and credit cards in developing countries which are yet to advance in technology.Key words: Debit cards, credit cards, commercial banks, Kenya

Implications of Risk Management Practices on Financial Performance of Sugar Manufacturing Firms in Kenya

This study focuses on the implications of risk management practices on financial performance of sugar firms in Kenya. The respondents were functional heads of the companies under the survey. We used exploratory design using survey research methodology that included structuredquestionnaires and interviews. Pearson correlation coefficients (r)was used to determine the interplay of risk management practices and performance of Sugar manufacturing firms. The empirical results of the study indicated that variation in risk management practices within firms is significant, arising from ANOVA tests at 95% level of confidence. Further, the study indicates a more than average positive relationship between risk management practices and performance (r =0.67). Cronbach‟s Alpha measured at 0.82 was considered adequate for measuring internal consistency reliability of measures of concepts. The study recommends adoption of integrative risk management perspective that considers the pursuit of upside potential alongside countering of downside losses in order to minimize the negative impact of risk on returns. The implication is that risk management is an integral part of the decision-making process and effective risk management can proactively help in overcoming the possibilities of the business failures. This paper is therefore informative in terms of the imperativeness for public policy adjustment and firm-level competencies required for better operation of sugar factories in Kenya. This would translate into creating viable sugar sector to support current plans to eradicate poverty as part of the goals for vision 2030”Keywords: Risk Management Practices; Sugar Manufacturing Firms; Financial Performanc

Widespread occurrence and diversity of cassava brown streak virus (Potyviridae:Ipomovirus) in Tanzania

Cassava brown streak disease (CBSD) has been a problem in Tanzania since 1936. Existing literature indicated limited distribution of the disease to low altitudes, usually <100 m above sea level, but the current geographical distribution of the disease was not known. Whether a single or many strains for the virus exist in Tanzania had not been reported to date. In this study, CBSD was recorded from sea level to ≈1,800 m above sea level. In total, 2,730 cassava plants were assessed for CBSD leaf symptoms in 91 fields and root symptoms were assessed at 81 sites. A sample was taken from each site for laboratory screening for Cassava brown streak virus (CBSV). CBSD mean foliar and root incidences were 38 and 36%, respectively. Reverse-transcription polymerase chain reaction of a partial 3′-terminal coat protein (CP) region of CBSV indicated the presence of CBSV in 67 of the 91 (73%) samples. Forty-three amplicons were sequenced, and phylogenetic comparisons with nucleotide sequences from GenBank (National Center for Biotechnology Information database) suggested that one major clade of CBSV primarily exists in Tanzania. However, there was nucleotide sequence divergence of up to 19% among the 42 isolates. In all, 42 of the 43 sequences had 80 to 100% nucleotide identity with 6 previously reported CP-CBSV sequences (from Mozambique and Tanzania). In total, 13 of 42 isolates had <80% nucleotide identities with three previously reported Ugandan CBSV sequences. One isolate, FJ687177, shared <78% sequence identity with the other Tanzanian sequences but was closely related (93%) to Ugandan isolates. It is likely that isolate FJ687177 may belong to a less widely distributed recently described species (clade 2) of CBSV, named Ugandan cassava brown streak virus (UCBSV)

Potential of adopting bamboo as an alternative crop to smallholder tobacco farming in South Nyanza region, Kenya

The presentation provides findings from a study that examined changes in household livelihood strategies used by tobacco farmers in comparison to non-tobacco farmers, and assessed marketing dynamics for investment in the bamboo industry in the South Nyanza region (Kenya). At 120 farm trial sites, bamboo seedlings were planted under natural tobacco growing conditions (soil, altitude, rainfall and temperatures). Education and training were provided to farmers. Bamboo matures in 3-4 years and can be harvested for up to 80 -120 years with small capital investment. Recommendations include provision of a transitional fund to support initial input requirements