Effect of Excisable Goods Verification on Excise Duty Compliance Among Water Firms in Nairobi, Kenya

Despite the integral role that excise duty plays in the government’s fiscal space, excise duty compliance has remained relatively low. This is in spite of several excise duty administration reforms implemented over time. The key aim of the study was to investigate the effect of excisable goods verification on excise duty compliance among water firms in Nairobi, Kenya. The study was guided by the following theories: Ability to pay theory and Unified Theory of Acceptance and Use of Technology (UTAUT. The study adopted an explanatory research design. The target population was 187 water firms in Nairobi, Kenya. There was an 87.2% response rate with 163 out of 187 invited respondents correctly filling the questionnaires and submitted. A non-response rate of 12.8% (24 individuals) was observed. The study used primary data, collected through questionnaires administered through a drop and pick later method. The data collected was analyzed using both descriptive and inferential statistics. The study analysis found that excisable goods verification had a positive and significant effect on excise duty compliance. β = 0.242, p = 0.000. The findings of this study provide policy recommendations for the government to enhance excise duty compliance. The government should prioritize the implementation of robust excisable goods verification systems. Further research could explore the effects of tax morale on excise duty compliance.