Influence of tax management strategies on performance of Boda Boda industry in Bungoma county-Kenya

Abstract

A practical means of transportation and a lifeline for many families, the boda boda sector has had a profound effect on Kenya's economy since its inception. The industry has shown great promise in producing large income, despite its relative youth. The purpose of this study was to examine how tax management tactics in Bungoma County, Kenya's boda boda business affected economic performance. In particular, the research looked at how boda boda sector performance was affected by company structure, cash management, tax payments, and tax credit leveraging. The study used a descriptive research approach and surveyed 2,327 boda boda drivers in five of Bungoma County's sub-counties. According to the chart by Krejcie and Morgan (1970), 331 individuals were chosen at random using stratified sampling. Preliminary research confirmed the validity and reliability of the tools used for data collection, which included structured questionnaires and interview guides. With a Cronbach alpha of 0.73, the dependability was found to be excellent. Data was analyzed using descriptive and inferential statistical techniques. Tables were used to show the results, while qualitative data was analyzed using theme analysis. According to the research, the boda boda sector's performance is greatly affected by different tax management tactics. Operators' entrepreneurial abilities and academic achievement are improved by using appropriate company structures, such as sole proprietorships and partnerships, according to key studies. Many boda boda riders have trouble getting loans since they don't have collateral, thus being able to manage their daily financial flow is vital. Important elements in enhancing the sector's performance include the use of electronic payment systems and efficient tax payment methods. The boda boda industry's success was shown to be statistically associated with tax management measures, according to chi-square tests. Research shows that this industry performs better when businesses are structured correctly, when partners are formed, when cash is managed efficiently, when taxes are paid in full and on time, and when tax credits are used via electronic payment systems. Based on the findings, these tactics are critical for Bungoma County's boda boda sector to continue growing and thriving. Policymakers and the community should use different tax management measures to boost the sector's performance, according to the study's recommendations. To improve cash management and tax compliance, it is important to encourage boda boda operators to become more entrepreneurial, increase their access to loans, and use electronic payment methods. In order to improve their financial management and company operations, boda boda operators also need ongoing training and capacity development. This research sheds light on the boda boda industry's economic potential and limitations, which is important for community members, policymakers, and academics. The boda boda industry can keep making a difference in Bungoma County and beyond by fixing the problems we've found and applying the solutions we've proposed. This will lead to more jobs and better living conditions for people. Investigating other variables that could affect the boda boda industry's success, as well as the long-term effects of these techniques, should be the focus of future studies. Findings from the research also stress the need for policy measures and government backing to foster an atmosphere conducive to boda boda expansion. Working together, we can help the boda boda business flourish sustainably, which would be good for Kenya's economy as a whole.