Influence of Public Governance on Tax Revenue of East Africa Community Member Countries

Abstract

Raising ample tax revenue remains one of the biggest challenges for most developing countries including EAC affiliated countries. In order to understand this social economic phenomenon, this study sought to determine the effect of public governance on tax revenue of east Africa community member countries. Public governance was measured by corruption perception index while tax revenue was measured by tax to GDP ratio. The study used descriptive research design. The population of the study comprised of 6 east Africa community member countries and collected secondary data from the year 2000 to 2023. Data was analyzed using panel simple linear regression and the findings revealed that public governance has a positive and statistically significant effect on tax revenue of east Africa community member countries. The finding suggests that implementation of effective public governance has a positive impact on total tax revenue collected underscoring the critical role public governance reforms plays in enhancing domestic tax resource mobilization of the EAC member countries. This study suggests that EAC member countries should strengthen their institutional capacity to ensure transparency and accountability in tax administration as a means to boost their total tax revenue collection.

Keywords: Public Governance, Tax Revenue, East Africa Community Member countries

JEL classification: H11, H20, 055

DOI: 10.7176/EJBM/17-5-01

Publication date: June 30^th 2025