Abstract

The first case of Coronavirus-19 was detected in the Wuhan city in China in December 2019. The virus first spread across the world leading to the declaration by the World Health Organization (WHO) of the disease as a Public Health Emergency of international concern on 30th January 2020, and as a pandemic on 11th March 2020. In response to the pandemic, the governments instituted various measures to either contain the spread of the virus or ameliorate its effect on the citizenry. The government of Kenya put in place three different measures to in response: fiscal policy measures, monetary measures and containment measures. Various institutions within the government including the Kenya Revenue Authority (KRA) also put in place additional measures to ensure continued service delivery. This study has investigated the effects of fiscal policy measures, containment measures and KRA’s approaches to tax collection on tax revenue. The theories that underpin this study are demand and supply theory, technology acceptance theory (tam model) and Keynesian theory. The study employed a descriptive cross-sectional study design, which employs mixed methods. The study population were business entities. A questionnaire comprising of closed and open-ended questions was developed and administered to the respondents. Generally, the study found that the fiscal measures although had positive effect on the taxpayers, they had a negative effect on tax revenue. The containment measures had negative effect on the business entities and by extension tax revenue. With respect to the KRA’s approaches to tax collection during Covid-19, they had mixed results. Recommendation have also been given including need for further research in the area..