A Comprehensive Analysis of the Kenyan VAT System
Loading...
Date
2025
Authors
Kiringai, Jane
Mutuku,Cyrus
Muchiri, Benjamin
Basescu, Simon
Remcho,Nathan
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
Value-Added Tax (VAT) is a cornerstone of Kenya’s Medium-Term Revenue Strategy (MTRS) and the Government of Kenya’s (GoK) domestic revenue goals. It plays a pivotal role, not only in raising domestic revenues, but also in developing a broader economic landscape that stimulates growth and diversification (The National Treasury and Economic Planning, 2023). However, despite a growing Gross Domestic Product (GDP) and broadening of the VAT base, the performance of the tax has not reached its potential. This paper provides a comprehensive analysis of the VAT architecture, identifies the VAT gap, and provides detailed policy recommendations to close the existing VAT gap.