Journal of Finance and Accounting

Effect of Electronic Monitoring on Excise Duty Compliance Among Cigarette Importers in Nairobi County, Kenya

Laura Wanjohi — 2025-12-01

Excisable Goods Management System, excise duty compliance rates among cigarette importers in Nairobi, Kenya, remain persistently low. The key aim of the study was to determine the effect of electronic monitoring on excise duty compliance among cigarette importers in Nairobi County, Kenya. The study was anchored on the following theories: the Ability to Pay Theory and the Diffusion of Innovation Theory. The study adopted an explanatory research design. The study's target population was 86 cigarette importers in Nairobi County. The study had two respondents from each of the 86 cigarette importers in Nairobi County, making a total of 172 respondents. 143 respondents, that is 83.1% of the 172 respondents who were intended for the study, took part and submitted fully completed questionnaires. The study used primary data, collected through structured questionnaires administered via a drop-and-pick-later method. The collected data were analyzed using both descriptive and inferential statistics. The study analysis found that electronic monitoring had a strong positive effect on excise duty compliance (β = 0.232, p = .014). Regarding electronic monitoring, the study demonstrates its effectiveness in improving excise duty compliance. The government should invest in integrated real-time tracking systems, including GPS and RFID technologies, for all high-risk excisable goods. Policies should also mandate electronic cargo monitoring for all transit goods to prevent diversion and smuggling at border points. Future research should investigate the effects of behavioral factors, such as tax morale and social norms, in shaping excise duty compliance attitudes.

The Moderating Effect of Size of the Bank on the Relationship Between Environmental, Social, and Governance (ESG) Practices and the Financial Performance of Listed Commercial Banks in Africa

Isaac Muchiri Njuguna — 2025-12-01

This study investigated the moderating effect of bank size on the relationship between Environmental, Social, and Governance (ESG) practices and the financial performance of listed commercial banks in Africa. Panel data were collected for fifteen banks across South Africa, Egypt, and Morocco over ten years (2013–2022), with ESG pillar scores sourced from the London Stock Exchange Group database and financial performance proxied by Return on Assets (ROA). Using fixed effects regression with lagged ESG variables, bank size (log of total assets) was tested as a moderator, while a Covid-19 dummy captured 2020–2021 shocks. Results from the baseline moderation model show that Environmental Score (β = 0.0001823, p = 0.005) and Governance Score (β = 0.0001298, p < 0.001) had significant positive effects on ROA, while Social Score (β = 0.0000074, p = 0.629), bank size (β = 0.0003479, p = 0.216), and Covid-19 (β = –0.000534, p = 0.995) were insignificant. The model explained 56.1% of the variation in profitability (R² overall = 0.5608, F(5,130) = 15.41, Prob > F = 0.000). In the extended interaction model, environmental (β = 0.000202, p = 0.004) and governance (β = 0.000226, p < 0.001) effects remained significant, while social turned negative and insignificant (β = –0.000062, p = 0.131). Crucially, the governance × size interaction was significant and negative (β = –0.0000048, p = 0.003), suggesting that the profitability benefits of governance weaken in larger banks. Interactions involving environmental (β = –0.000003, p = 0.246) and social (β = 0.00000615, p = 0.079) were statistically insignificant. The interaction model explained 59.6% of profitability variation (R² overall = 0.5957, F (8,127) = 11.75, Prob > F = 0.000). The findings demonstrate that while environmental and governance practices consistently enhance financial performance, their effects are not uniform across bank sizes. Specifically, larger banks face diminishing governance-related gains, highlighting the importance of streamlining governance structures in large institutions and strengthening ESG disclosure standards across African markets.

Effect of the Common External Tariff on Trade Facilitation at Namanga Border Station in Kenya

Scoviah Bwahyi — 2025-11-10

Trade facilitation reforms have been a key component of the overall tax reform package, for widening of facilitation base. Despite these reforms, traders crossing our borders encounter a range of obstacles. The general objective will be to determine the effect of the common external tariff on trade facilitation at the Namanga border station in Kenya. The study was anchored on the New Trade Theory and the Customs Union Theory. This study used an explanatory research design. The target population was 204 managers of clearing and forwarding agents and KRA customs officers in the Namanga border station in Kenya. Following data collection and analysis, 167 respondents correctly completed and submitted their questionnaires, representing an 81.9% response rate. The study found that common external tariff has a positive and significant effect on trade facilitation (β = 0.218, p = 0.019). Based on the findings, policymakers should strengthen tariff harmonization within the East African Community (EAC) by ensuring consistent implementation and minimizing exemptions that create discrepancies. Future studies could examine how artificial intelligence and blockchain could further enhance trade facilitation.

Effect of Customer Service on Value Added Tax Compliance Among Small and Medium Enterprises in Starehe Sub-County in Nairobi, Kenya

Alex Musyoka Ndambuki — 2025-12-01

The compliance with Value Added Tax (VAT) among small and medium enterprises (SMEs) is an area of significant interest across different nations. The primary objective of this study was to determine the effect of customer service on value-added tax compliance among small and medium enterprises in Starehe Sub-County in Nairobi, Kenya. The theory that guided this study was the Ability to Pay Theory and the Social Exchange Theory. This study utilized an explanatory research design, targeting a population of 5,395 Small and Medium Enterprises in Starehe Sub-County in Nairobi, Kenya, with a sample size of 372 respondents. 290 respondents correctly filled and submitted their questionnaires, indicating a 78 % response rate. This study utilized a questionnaire to gather primary data, which was subsequently analyzed using descriptive and inferential statistics to assess the relationships between variables. The beta coefficient results revealed customer service had a positive and significant effect on VAT compliance (β = 0.372, p = 0.035). The Kenya Revenue Authority (KRA) tax authorities should enhance customer service through dedicated SME support desks and regular staff training programs. Future research could investigate the effects of tax reforms on VAT compliance particularly Kenya's Finance Act 2023 provisions.

Effect of Savings on the Financial Performance of Saccos in Kilifi County

Fred Cmatete Wafula — 2025-11-24

The study sought to determine the effect of savings on the financial performance of SACCOs in Kilifi County. The study was based on a cross-sectional survey research design whereby data were collected only once from a random sample of 122 SACCOs, spread out proportionately across the seven sub-counties in Kilifi County. Questionnaires were prepared and distributed among administrators in the select samples. The results at the basic level were then presented in the form of charts, tables, and explanations on major thematic areas. The findings of the study revealed that there was a statistically significant relationship between savings and the financial performance of SACCOs (t=2.691 & p=0.009<0.05). This highlights the need to foster a savings culture within SACCOs and provide members with alluring savings options. The capital base of SACCOs is strengthened by increased savings, allowing them to better meet the financial demands of their members. This is in addition to improving the financial health of individual members. For SACCO managers, diversifying financial products is essential to meet the diverse needs of their members. By offering innovative loan products, savings plans, and insurance offerings, SACCOs can attract more members and increase their overall financial performance.

The Influence of the Agriculture Sector to Gross Domestic Product Contributions on Tax Revenue Performance in Kenya

Beatrice W. Kihoria — 2025-11-10

This study investigated the influence of the contribution of the agriculture sector to tax revenue performance, with a focus on its roles in enhancing tax mobilization and supporting economic growth. The study was grounded in two key theoretical frameworks: the Cost-of-Service Theory and the Benefits Theory, which guide the exploration of the relationship between sectoral economic contributions and tax revenue outcomes. A time series research design was employed, using secondary data from the Kenya Revenue Authority and the Kenya National Bureau of Statistics for the financial years 2014 to 2024. The agriculture sector's current contribution to GDP had a significant positive effect on tax revenue performance (β = 289.391, p = 0.000), while its first lag showed significant negative effects (β = -396.566, p = 0.000) and the second lag demonstrated partial recovery (β = 213.961, p = 0.000). This study concludes that Kenya’s agriculture, services, and manufacturing sectors all significantly influence tax revenue performance, but with distinct temporal patterns. Regarding the effects of agriculture sector's on tax revenue performance, cyclical effects on tax revenue performance, to mitigate the negative adjustment effects, the Kenya Revenue Authority (KRA) should develop and deploy a digital platform for farmers, particularly those in large-scale cash-crop farming, to declare and pay taxes based on projected annual income.