1.
Given the importance of the M-Pesa to the rising economic growth of the Kenyan economy, why
would Kenyan government take 10% tax off the employees paycheck?
Solution
M-pesa : Mobile phone based money transfer system in Kenya, in simple language with using
M-pesa one can trasfer money to other through his moble phone in a structured manner.
Importance of M-pesa for rising economic growth :
Kenya government has taken 10% off on the employee pay check to promote compliance with
tax, maximising revenue collection with least possible cost and to keep proper claims againist
their expenses, it will useful for the Kenya citizens to save more on their income by means their
payment towards tax will be less and useful to retain more of their income.