Tax is the main source of revenue for the government’s development projects and recurrent expenditure financing.
However, tax compliance among small and medium enterprises (SMEs) is poor. They have long been recognised as a priority sector in Kenya with more than 70 percent of the gross domestic product under SME control. They also play a critical role in achieving economic growth rate target, employment figures, mobilisation of domestic savings for investment, harnessing local raw materials and poverty reduction, among others.
