In Kenya, there exist small, medium (SMEs) and large enterprises but SMEs’ have been always regarded as the engines due to their immense contribution to the economy. Many reforms in taxation system in Kenya have been done to ensure that the government collects enough revenue to finance its ever increasing budget. However, taxation is still an uphill task among SMEs thus viewed to be complex and a burden. In this regard therefore, the study was guided by tax compliance theory while assessing the key taxation concepts which will increase compliance among Kenya’s SMEs. Using library research design, the study found out that SMEs in Kenya are in dire need of understanding the principal objective of taxation, taxation approaches, tax crimes and audits. However, the researcher recommends increased taxation sensitization by the main tax authority in Kenya (KRA) given the new reforms made. In addition, there is need to avail more knowledge to Kenya’s SMEs regarding factors affecting their tax compliance.
Keywords: SMEs, Tax Compliance, Tax Crimes, Tax audits, Taxation Approaches
