Government Taxation Policy: A factor Affecting SMEs' Asset Accumulation in Uasin Gishu County, Kenya

Abstract

In Kenya, SME provide source of employment creation, innovation, competition, economic dynamism which eventually lead to poverty alleviation and national growth. Government taxation policy is one of the factors that constitute the SMEs"Ÿ economic surroundings. This study sought to find out the effects of government taxation policy on asset accumulation of SME in Kenya and particularly Uasin Gishu County. In order to achieve the purpose of this study, the specific research objective was to find out the effects of government taxation policy on asset accumulation of SME. The data for this study was collected from primary and secondary sources. Research instruments were questionnaire and document analysis. The study population comprised of staff and management of SME within Uasin Gishu County, Kenya who formed the sample for the study. The explanatory research design was employed in the study. The samples for the study were selected using stratified random and simple random sampling methods. The data from the research instruments were coded and analyzed using the SPSS V 22. Descriptive statistics, frequency tables, percentages, mean and standard deviation were used to present the data, while Correlation was used to test the hypotheses. Results of the study found statistically significant relationships between the three dimensions of government taxation policy and SMEs asset accumulation. The researcher concluded therefore that government taxation policy had a significant impact on asset accumulation of SMEs.