| dc.description.abstract | This study analyzes the determinants of tax performance in Kenya, Tanzania, Rwanda,
Uganda, and Burundi from 2013 to 2023. Existing literature shows significant gaps in
regional analysis, with most studies focusing on individual countries or other global
regions rather than offering a unified empirical examination of tax determinants across
EAC nations. Using a fixed effects panel regression model with data from World
Development Indicators and International Financial Statistics, the analysis reveals that
GDP per capita (β = 3.88, p = 0.002) and manufacturing share (β = 0.16, p = 0.007) are
statistically significant drivers of tax ratios. Conversely, variables such as agricultural
share, trade openness, financial depth, inflation, and exchange rates were found to be
statistically insignificant determinants in this context. Tax effort analysis revealed a
universal efficiency gap, with Rwanda (0.91) and Kenya (0.90) demonstrating the
highest revenue mobilization efficiency, followed by Uganda (0.87) and Burundi
(0.88), while Tanzania (0.77) showed the most significant potential for improvement.
The study affirms that sustainable revenue growth in the EAC hinges on long-term
structural economic transformation complemented by targeted administrative reforms
to bridge the efficiency gap. Recommendations include promoting industrial
diversification, enhancing tax administration digitalization, and implementing
cooperative taxation models for the agricultural sector. These findings provide
evidence-based guidance for policymakers seeking to improve domestic revenue
mobilization in line with EAC Vision 2050 and Africa's Agenda 2063 development
frameworks. | en_US |
