TABLE OF CONTENT.

DECLARATION ....................................................................................•................................. ii

APPROVAL ............................................................................................................................... iii

DEDICATION ........................................................................................................................... iv

ACKNOWLEDGEMENT .......................................................................................................... v

TABLE OF CONTENT ................... : ......................................................................................... vi

CHAPTER ONE ......................................................................................................................... I

1.0 Introduction ........................................................................................................................... - I

1.1 Background of the study ....................................................................................................... I

1.2 Definition of taxation ............................................................................................................ 6

1.3 Kenya's Taxation system .............................................................. , .... · ................................... 7

1.4 Relationship between taxation and economic growth ........................................................... 7

1.5 Statement of the problem ...................................................................................................... 8

1.3 Objectives ........................................................................................................................... 9

- 1.3.1 General Objective ............................. : ................................................................................. 9

1.3.2 Specific Objectives ............................................................................................................. 9

1.4 Research questions ................................................................................................................ 9

1.5 Scope of the Study ................. : .......................................................................................... 9

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1.5.1 Geographical study ............................................................................................................. 9

1.5.2 Content scope ................................................................................. : ................................... 9

1.6 The significant of the study ................................................................................................... 9

1. 7 Methodology ....................................................................................................................... 10

1. 7. I Introduction ...................................................................................................................... 10

- . 1. 7 .2 Research design ................................................................................................................ 10

1.7.3 Study area ......................................................................................................................... 10

1. 7.4 Research instrument ......................................................................................................... 10

1.7.4.l Documentation ..................... ~ ....................................................................................... 11

1.7.5 Limitation of the study ..................................................................................................... 11

1.7.6 Validity and Reliability of the Instrument.. ...................................................................... 12

3.7.7 Data Analysis ................................................................................. : ............................... 12

CHAPTER TWO ....................................................................................................................... 13

EXPANDING ON THE CONCEPT OF TAXATION ............................................................. 13

2.0 Introduction ..................................... , ............................... ." ................................................... 13

2.1 Theoretical perspective ....................................................................................................... 13

2.2 Role of taxation ................................................................................................................... 14

- 2.3 Conclusion ........................................... ".': .............................................................................. 22

viii

CHAPTER THREE ................................................................................................................... 23

LEGAL FRAMEWORK ........................................................................................................... 23

CHAPTER FOUR ............................ ~ ....................................................................................... 29

EFFECTS OF TAXATION ON THE ECONOMY .................................................................. 29

4.0 Introduction ......................................................................................................................... 29

4.1 Effects of taxation on economic growij, ............................................................................. 29

CHAPTER FIVE ....................................................................................................................... 36

CONCLUSION AND RECOMMENDATION ........................................................................ 36

5 .0 Introduction .................................... : .................................................................................... 36

5. I Summary of findings ........................................................................................................... 3 6

5 .2 Conclusions ......................................................................................................................... 3 7 ~

5.3 Recommendations ............................................................................................................... 37

5.4 Areas for future research ..................................................................................................... 40

REFERENCE ................................... :: ....................................................................................... 42