Determinants of adoption of online tax services by taxpayers in Kisumu City of Kenya

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
Kampala International University, College of Economics & management.
Developing countries are faced with the need for more government revenue due to population pressure, growing fiscal deficit, unsustainable national debt coupled with challenges of globalization, HIV/AIDS and increasing poverty levels among other reasons. In order to deal with these challenges, revenue collection agencies must come up with the most effective tax collection methods that are convenient and efficient to the taxpayers. To achieve this, Kenya Revenue Authority embarked on tax modernization programme that encompassed automation of processes and development of a professional workforce in order to meet taxpayers’ expectations as well as increase revenue collected for the government. As part of the automation of processes, Kenya Revenue Authority rolled out online tax services that are available to all taxpayers on the internet. This study aimed at establishing determinants of adopting the online tax services by taxpayers in Kisumu city of Kenya by testing a modified Technology Acceptance Model (TAM) adopted from Technology Acceptance Model (Davis, 1989). This study extended TAM by concentrating on perceived ease of use, perceived usefulness, attitude and behavioral intentions of taxpayers towards use online tax services. By use of questionnaires, a sample of 50 taxpayers from Kisumu were surveyed to establish why and how they are adopting the online tax services. The data obtained was analyzed using descriptive statistics and then compared with the factors proposed by technology acceptance model to see if the adoption follows the modified Technology Acceptance Model. It was established that perceived ease of use of online tax services, perceived usefulness and attitude towards the online tax services and their influence on behavioral intentions to use online tax services are the determinants of adopting online tax services by taxpayers in Kisumu city of Kenya.
A thesis submitted to the school of post graduate studies in partial fulfillment of the requirements for the Award of the Degree of Master of Business Administration of Kampala International University
Adoption of online tax services, Taxpayers, Kisumu City, Kenya