KIPPRA-IFPRI-KRA Capacity Sharing and Working Retreat on the Kenya Tax Model

Following the continues collaborative CGE modelling activities between Kenya Institute for Public Policy Research and Analysis (KIPPRA) and International Food Policy Research Institute (IFPRI), organized a capacity-sharing and working retreat focused on the Kenya Tax Model. The 10-day session began on July 29, 2024, in Naivasha, Kenya. This forms part of Kenya’s Capacity Sharing Workshops Series under the CGIAR Initiatives on National Policies and Strategies (NPS), and Foresight .The workshop brought together 8 participants from Kenya Institute for Public Policy Research and Analysis(KIPPRA) and Kenya Revenue Authority  while the  training was facilitated by Lensa Omune, and Juneweenex Mbuthia  Research Officers based in Nairobi, Kenya office.

The training was designed to first conduct an in-depth analysis of Kenya’s revenue and expenditure structure, followed by a comparison with its peer and aspirational countries. Second, participants received a walkthrough training on the Social Accounting Matrix (SAM) to understand Kenya’s economic structure using the Kenya SAM 2021. Specifically, they explored the theoretical foundations of SAM, including the circular flow of income, and examined all SAM accounts (Activities, Commodities, Factors, Enterprises, Households, Government (Tax), Investments, Savings, and the Rest of the World), as well as SAM analysis (calculating Gross Output, Total Supply, Marketed Output, Own Consumption Output, Value Added, and Intermediate Consumption). Thirdly, the training involved aggregating tax data at the product level and mapping this data to the 90 sectors in the Social Accounting Matrix as preparation for developing the Kenya tax model. Finally, participants were guided through the standard IFPRI CGE framework, covering both its theoretical foundations and the building blocks of the CGE model.

Subsequent weekly learning sessions will continue as part of capacity-sharing on SAM multiplier analysis, hands-on exercises with SAM, and CGE model calibration. This activity is anticipated to lead to the joint publication of an in-depth report on Kenya’s revenue and expenses (2000–2021) and the development of the Kenya tax model.

Author:

Lensa Omune, Research Officer, IFPRI Kenya

Juneweenex Mbuthia, Research Officer, IFPRI Kenya

Photo credit:  IFPRI Kenya

This work is part of the CGIAR Research Initiative on National Policies and Strategies (NPS). CGIAR launched NPS with national and international partners to build policy coherence, respond to policy demands and crises, and integrate policy tools at national and subnational levels in countries in Africa, Asia, and Latin America. CGIAR centers participating in NPS are The Alliance of Bioversity International and the International Center for Tropical Agriculture (Alliance Bioversity-CIAT), International Food Policy Research Institute (IFPRI), International Livestock Research Institute (ILRI), International Water Management Institute (IWMI), International Potato Center (CIP), International Institute of Tropical Agriculture (IITA), and WorldFish. We would like to thank all funders who supported this research through their contributions to the CGIAR Trust Fund.