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Public Finance And Taxation

Accountancy · Level 6  ·  8 Chapters

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What Public Finance And Taxation covers

Public Finance and Taxation at Accountancy Level 6 explains how government raises and spends money, and how you compute and administer the taxes that result. You start with the taxation process under the Constitution, the purposes and classification of taxes, an optimal tax system, incidence, taxable capacity and the revenue authority. The budget outcome covers the public budget process, the roles of budget officers and the national and county treasuries, and fiscal policy tools, while managing public finance deals with expenditure areas, revenue sources, fiscal policy and national debt. You then compute taxable income from employment, business, property and farming, and capital allowances. Administration covers income tax and PAYE returns, objections and penalties, presumptive tax, VAT registration, rates and refunds, and customs and excise duty.

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Careers after Public Finance And Taxation

Understanding public finance and taxation is a powerful skillset that opens doors across Kenya’s dynamic economy. Whether you dream of working in government, private sector, or starting your own business, these skills are essential for making smart financial decisions, ensuring compliance, and even influencing how public resources are used to change lives.

  • County Governments & National Treasury: County finance offices, budget committees, and the National Treasury need skilled professionals to manage budgeting, tax collection, and public expenditure. You could work as a revenue officer, budget analyst, or finance clerk.
  • Kenya Revenue Authority (KRA): KRA employs tax assessors, auditors, and compliance officers who must understand the Income Tax Act and public finance systems to ensure effective tax collection and enforcement.
  • Jua Kali & Small Businesses: Entrepreneurs who understand taxation can run compliant businesses, claim allowable deductions, and avoid costly penalties. You can also offer freelance tax consultancy to local traders and SMEs.
  • NGOs & Development Agencies: Organizations like USAID, World Bank projects, and local NGOs require finance officers who can manage donor funds, prepare budgets, and report expenditure transparently, following Kenyan laws.
  • Agribusiness & Cooperatives (e.g., KTDA): Large cooperatives and agribusinesses need finance professionals to handle taxation, budgeting, and reporting—skills that help these organizations grow and remain sustainable.
  • Construction & Hospitality Sectors: Companies in these sectors rely on finance officers and accountants to manage payroll taxes, VAT, and prepare budgets for projects or operations.
  • Self-Employment: With expertise in public finance and taxation, you can become a licensed tax consultant, helping individuals and businesses file returns, plan taxes, and comply with the law.

Mastering public finance and taxation gives you the confidence and competence to shape your career, support your community, and build a future where you can truly make a difference.

Chapters

1
Demonstrate understanding of public finance and taxation process
14 topics
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2
Demonstrate understanding of public budget process
5 topics
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3
Manage public finance
6 topics
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4
Compute taxable income
12 topics
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5
Compute capital allowances
7 topics
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6
Administer income tax
8 topics
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7
Administer presumptive tax and VAT
12 topics
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8
Administer customs and excise duty
7 topics
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What Public Finance And Taxation covers: 51 main topics in 8 chapters

1. Demonstrate understanding of public finance and taxation process

  1. 1.1 General overview of Public Financial Management as taxation process envisaged by the Constitution (
  2. 1.2 History and Purposes of taxation
  3. 1.3 Principles of an optimal tax system
  4. 1.4 classification of taxes
  5. 1.5 Impact incidence and tax shifting, tax shifting theories
  6. 1.6 Taxable capacity
  7. 1.7 Revenue authority - History, structure and mandate

2. Demonstrate understanding of public budget process

  1. 2.1 General definition of budgets terms Public budget process
  2. 2.2 Role of budget officers in budget preparation and execution
  3. 2.3 Responsibilities of The National and County treasury's in relation to budget preparation
  4. 2.4 Budget process for both national, county and Public entities report writing
  5. 2.5 Budgetary and fiscal policy tools Manage public finance

3. Manage public finance

  1. 3.1 Principles of public finance
  2. 3.2 Area s of government expenditure are identified
  3. 3.3 Government revenue sources are identify
  4. 3.4 Taxation principles are applied
  5. 3.5 Fiscal policy is formulated
  6. 3.6 National debt levels are determined

4. Compute taxable income

  1. 4.1 Taxable and non-taxable persons
  2. 4.2 Sources of taxable incomes
  3. 4.3 Employment income:
  4. 4.4 Business income:
  5. 4.5 Income from use of property- rent and royalties, Farming income Investment income

5. Compute capital allowances

  1. 5.1 Rationale for capital deductions
  2. 5.2 Investment deductions: ordinary manufacturers
  3. 5.3 Industrial building deductions
  4. 5.4 Wear and tear allowances
  5. 5.5 Farm works deductions
  6. 5.6 Mining allowances reports
  7. 5.7 Shipping investment deductions 6 Administer income tax

6. Administer income tax

  1. 6.1 Overview of the income tax act
  2. 6.2 Operations of PAYE systems: Preparation of PAYE returns, categories of employees
  3. 6.3 Notices, objections, appeals and relief of mistake, Appellant bodies
  4. 6.4 Collection, recovery and refund of taxes
  5. 6.5 Offences, fines, penalties and interest
  6. 6.6 Application of ICT in business; iTax, simba system

7. Administer presumptive tax and VAT

  1. 7.1 Introduction and development of presumptive tax and VAT
  2. 7.2 Registration and deregistration of businesses for VAT
  3. 7.3 Taxable and non-taxable supplies
  4. 7.4 Privileged persons and institutions reports
  5. 7.5 VAT rates
  6. 7.6 Remission, rebate and refund of VAT
  7. 7.7 Rights and obligations of VAT registered person
  8. 7.8 Offences fines, penalties and interest

8. Administer customs and excise duty

  1. 8.1 Customs procedure
  2. 8.2 Import and export duties
  3. 8.3 Prohibitions and restriction measures
  4. 8.4 Transit goods and bond securities
  5. 8.5 Excisable goods and reports services
  6. 8.6 Purposes of customs and excise duties
  7. 8.7 Emerging issues and trends

Revise this unit

Exam-style questions 112 Written to CDACC standard, with answers Test yourself 196 Multiple-choice, one at a time Practise questions 162 Quick recall — check you know the facts
3 more for this unit
Oral exam preparation 49 What the assessor asks, and how to answer out loud Worked calculations 38 Step-by-step maths with the common mistakes Quick cards 983 Myth busters, skill tips and scenarios

Beyond the syllabus

Decision simulator 5 On site, what would you do? Workplace scenarios 100 Real site situations — what would you do? Turn this into income 60 Where this skill earns — what to charge, how to find clients

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