ABSTRACT:- This study examined the influence of cloud accounting adoption on tax compliance among commercial banks listed on the Nairobi Securities Exchange (NSE), Kenya. The study was guided by the objective of determining the extent to which cloud accounting adoption affects tax compliance in the Kenyan banking sector. A correlational research design was adopted to establish the relationship between cloud accounting adoption and tax compliance. The target population comprised all commercial banks listed on the NSE, with data collected from finance, accounting, and tax-related personnel using structured questionnaires and secondary financial reports. Data were analyzed using inferential statistics, specifically simple linear regression analysis. The regression results indicated that cloud accounting adoption has a positive and statistically significant influence on tax compliance (β = 0.6089, p = 0.001). The model further revealed a high explanatory power (R² = 0.7314), implying that 73.14% of the variation in tax compliance is explained by cloud accounting adoption. The study also found that cloud accounting enhances accuracy in financial reporting, improves timeliness of tax filing, and strengthens transparency in accounting processes. The study concluded that cloud accounting adoption is a key determinant of tax compliance among listed commercial banks in Kenya. It was therefore recommended that commercial banks should enhance the adoption and utilization of cloud-based accounting systems to improve tax compliance. Regulatory bodies such as the Kenya Revenue Authority (KRA) and the Central Bank of Kenya (CBK) should also support the integration of cloud accounting systems with tax administration platforms to improve compliance efficiency.

Keywords: Cloud Accounting Adoption, Tax Compliance, Commercial Banks, Nairobi Securities Exchange, Kenya.