Analysis Of Buoyancy And Elasticity Of Income Taxes In Kenya

ABSTRACT Kenya, just like many developing countries is currently confronted by huge fiscal deficits, declining external assistance and huge debt service charges that are adversely affecting the country’s development process. The tax revenue in Kenya keeps performing poorly and unsteadily. The revenue collected from tax does not match the target which creates budget deficits. Increased spending needs and weakening revenue-raising capacities have together created structural budget deficits that have in turn brought about fiscal crises whenever a recession hits. Therefore, of concern to policyma…