Abstract: In bid to enhance tax compliance many states globally have now introduced online tax systems. Whereas these systems have been seen as an efficient way of tax administration, the complex nature of Small and Medium Size Enterprises (SMEs) in many developing countries may make pose challenge to these innovations. The purpose of this study is to establish whether tax compliance among small and medium enterprises in Kericho County, Kenya, is associated with online tax system, as the general objective. The population was 102 registered SMEs located in Kericho County, with a sample size of 102 SMEs.