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Sources of public revenue for national government in Kenya

Answer Text:
Domestic Revenue Sources.
These are the taxes levied on citizens, private and public organizations, foreign investors and business people. There are two main groups of taxes;
1. Direct taxes. (Income tax)
These are taxes derived from people’s salaries in form of income tax.
2. Indirect taxes. These are taxes levied on goods and services but with parliamentary approval. They include; value added tax, custom duties, export duty etc.
External Revenue Sources
There are two main sources of external assistance;
1. Bilateral Aid; where two friendly nations assist each other. E.g. Kenya and Japan
2. Multilateral Aid; many countries form trading blocs or global institutions like World Bank, IMF, European Union and commonwealth for this purpose.