Community donations, public goods provision, and taxpayer attitudes: lessons from a survey experiment in Kenya

Abstract Tax evasion is a significant challenge in many African countries where motivations for tax compliance remain poorly understood. This study investigates whether donations to community goods undermine individuals’ willingness to pay state taxes, particularly where community donations are common and public goods scarce. Using a survey experiment in Kenya, we examine the relationship between community donations and tax compliance attitudes, factoring in access to public goods, government fairness, transparency, and enforcement.

Findings indicate that community donations reduce tax compliance attitudes, whereas improved access to public goods enhances positive attitudes toward taxes and trust in government. This suggests that perceptions of a fair exchange with the government can be more important than enforcement.