Fiscal instruments are tools that governments use to manage revenue and expenditure and therefore influence the growth (or stability) of the various sectors of the economy. Government revenue is derived primarily through taxation. In Kenya, land taxation has contributed less than 1% of government revenue for the past three years. The Sessional Paper No.
Land acquisitions, either driven by foreign investments or domestic investment needs have continued to polarize opinions. When this research was proposed, it was premised on arguments by scholars Ruth Meinzen-Dick and Helen Markelova, who had analysed agricultural land deals, and argued that there were potentially two schools of thought about foreign acquisitions over agricultural land.
The acquisition of land by foreigners in developing countries has emerged as a key mechanism for foreign direct investment (FDI). FDI is defined by the Organization for Economic Cooperation and Development (OECD) as the category of international investment that reflects the objective of a resident entity in one economy to obtain a lasting interest in an enterprise resident in another economy.
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