Tax Policy on Profitability and Growth of Sme in Uasin Gishu, Kenya

This study sought to establish if any association exists between profitability, growth of SMEs and the Government taxation policy environment in which they operate in Kenya and particularly Uasin Gishu County. The data for this study was collected from primary and secondary sources. While the research instruments were questionnaire, interview and document analysis, the study population comprised of staff and management of SME within Uasin Gishu County, Kenya who formed the sample for the study. The explanatory research design was employed in the study. The researcher concluded that government taxation policy had a significant impact on profitability and growth of SMEs through positive and negative effects on profit and growth dimensions. The researcher's desire is that this study will stimulate debate on Government taxation policy in relation to profitability and growth of SMEs and through that galvanize public and government support for SME.