School of Business
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Item Effect of behavioral biases on tax compliance among small and medium-sized enterprises owners Nairobi county, Kenya(KCA University, 2025) Njagi, Isaac N.This study investigated the influence of behavioural biases on tax compliance among medium-sized enterprise (SME) owners in Nairobi County, Kenya. It focused on key biases, including mental accounting, risk aversion, authority trust bias, and overconfidence bias, to understand their impact on tax compliance behaviours. Despite efforts to streamline tax systems and promote voluntary compliance, challenges persisted, particularly in developing economies like Kenya, where the tax-to-GDP ratio had declined, signalling ongoing compliance issues. This study filled a critical gap in the literature, as previous research had largely overlooked the specific effects of these biases on tax compliance, particularly among SME owners in Nairobi County. The research applied theories such as Mental Accounting Theory, Prospect Theory, Institutional Trust Theory, and Behavioural Finance Theory to provide a comprehensive framework for understanding these biases. The target population consisted of 32,251 SME owners in Nairobi County who had registered and paid their trade licenses by July 2023. The study found that mental accounting did not significantly affect tax compliance. Despite the hypothesis that individuals who categorized their finances might show different compliance behaviours, the results revealed that mental accounting did not meaningfully influence tax compliance. In contrast, risk aversion showed a positive and significant relationship with tax compliance. SME owners who were more risk-averse demonstrated higher levels of compliance, likely due to a greater fear of penalties and legal repercussions. Authority trust bias, however, had a negative impact on tax compliance. SME owners who exhibited higher trust in authorities were less likely to comply with tax obligations, possibly due to a belief that authorities would overlook minor infractions. Lastly, overconfidence bias had a positive and significant effect on tax compliance. SME owners who felt more confident in their understanding of tax requirements and their ability to comply were more likely to fulfil their tax obligations. The findings provided valuable insights for policy interventions aimed at improving tax compliance rates among SMEs. By addressing both the structural challenges of tax systems and the cognitive biases influencing compliance behaviour, this study contributed to a better understanding of the psychological factors driving financial decisions. The research offered practical recommendations for tax authorities, policymakers, and SME owners, with the goal of supporting sustainable economic development through improved revenue collection and compliance practices.Item Effect Of Procurement Contract Determinants On Organizational Performance: A Case Of Nairobi County.(KCA University, 2015) Karungani, Walter P.The overall aim of this study was to investigate the effect of public procurement contract determinants on organizational performance. The study followed a descriptive research design targeting the Nairobi County officials. With aid of 10 researcher assistants, the researcher and assistants targeted 87 finance procurement officers from Nairobi county government using semi structured questionnaires, administered through drop and pick later method, and obtained 81 completed questionnaires - 93.10% response rate. The data was organized in excel spread sheets and analyzed using excel spread sheets and SPSS version 20. Regarding the effect of internal procurement processes on organizational performance, the sampled respondents stated that internal procurement processes do influence organizational performance majorly because procurement processes do enhance purchase quality, enhances controls in the organization, and manages possible self-interests, and increases efficiency and effectiveness. Regarding the effect of policy/regulatory framework on organizational performance, the respondents explained that policy and regulatory framework influences organizational performance because it creates a level playing field, shapes the environment for decision making, acts as a guide for the employees, upholds standards of quality and established parameters for monitoring and evaluation. Regarding the effect of leadership and management support on organizational performance, the respondents said that the procurement leadership and management does influence performance in their organization because; leaders are the custodians of morals in the organization, they provide direction to the organization, they ought to encourage and guide the junior officers to what is expected and are the main decision makers in an organization. Regarding the effect of ICT infrastructure support on organizational performance the respondents explained that ICT; enhances efficiency, monitoring and control, makes work easy, enhances communication and service delivery. The regression results regression results established a strong positive relationship between dependent variable organizational performance and the independent variables; Internal Procurement Processes, Regulatory Framework, Leadership and Management Support and ICT Infrastructure because the coefficient of determination (R) was 0.867 and correlation coefficient (R-Square) as 0.752. The study concludes that public procurement contract determinants do influence performance to a great extent. Organizations should eliminate inefficient and ineffective obstacles and challenges in the procurement process which cause wastage of resources and inhibit performance. Top leaders should cheer their team towards doing the right thing. Appropriate ICT infrastructure for procurement processes in bidding, technical and financial evaluation and monitoring should be supported by top leadership. Also, necessary structures to promote integrity and accountability should be upheld.