Thesis:

Relationship between tax policies and employee job satisfaction in public sector: A case of employees in Uasin Gishu county government, Kenya

The public sector in Kenya faces challenges related to employee job satisfaction, which may be influenced by tax policies. Despite the importance of this relationship, there is limited research specific to this context. Therefore, this study aimed at exploring the relationship between tax policies and employee job satisfaction in the public sector. This study was guided by the following specific objectives: to examine the influence of progressive tax structures on employee job satisfaction in the public sector, to determine the influence of tax deductions on benefits on employee job satisfaction in the public sector, to establish the influence of tax transparency on communication employee job satisfaction in the public sector and assess the influence of tax reform initiatives on employee job satisfaction in the public sector. The study was conducted in Uasin Gishu County Government. This study was anchored on Expectancy theory, by Victor Vroom (1960). The study employed a cross-sectional research design, utilizing questionnaire and interview schedule. Data collected from employees and human resource officers in various departments in Uasin Gishu County Government. The target population for the study involved 931 public sector employees. A sample size of 136 employees was arrived at using Krejcie and Morgan (1970) sample sized determination formulae, ensuring representation from various departments and levels of in the county government of Uasin Gishu. Further, 8 human resource officers were selected from all the departments making a total of 144 respondents. Quantitative data was analyzed using statistical methods, descriptive statistics such as frequencies and percentages and inferential statistics such as correlation analysis and regression analysis, to assess the relationships between tax policies and employee job satisfaction. Qualitative data from interviews was presented thematically in line with objectives of the study. The findings from the study revealed that progressive tax structures are generally perceived as unfair and do not significantly contribute to employee job satisfaction, with many employees feeling that these policies fail to meet their expectations for fairness and financial security. Tax deductions and benefits are also viewed negatively, as a majority of employees do not consider them valuable or sufficient incentives to enhance job satisfaction and loyalty. In contrast, transparent communication about tax policies is seen as crucial for building trust and engagement among employees, highlighting the importance of organizational transparency. Lastly, tax reform initiatives were largely supported by employees, with many believing that these reforms simplify tax processes, reduce the tax burden, and positively impact job satisfaction, though some skepticism remains. The findings of this study will contribute to the understanding of how tax policies impact employee job satisfaction in the public sector in Uasin Gishu County Government, Kenya. The results will provide valuable recommendations for policymakers, public sector managers, and other stakeholders involved in tax policy formulation and implementation by identifying areas for improvement in tax policies and their communication.