Abstract: Governments all over the world collect taxes so as to finance public services. Taxpayers in Kenya display varying levels in compliance to tax. The objective of this study was to investigate the influence of tax regulations enforcement on tax compliance by Agri-business SMEs in Nyeri County, Kenya. The theory of Economic deterrence anchored the study and the study did empirical review regarding related literature. Target population in the study was owners of Agri-business SMEs in Nyeri and Karatina Towns. Sample size was of 208 SMEs owners. Descriptive survey research method was used. Stratified systematic sampling method was adopted. Proportional method of allocation was used in allocating sample size. Semi-structured questionnaire was used to collect primary data. The questionnaire’s reliability was tested through Cronbach’s Coefficient Alpha computation. Instrument’s validity test was conducted using two expert groups. Data analysis was done through Statistical Package for Social Sciences (SPSS) software. Descriptive statistics and also inferential statistics were generated. Bivariate as well as multivariate linear regression analysis generated ANOVA, correlation coefficients and Model fitness R2. Findings presentation was through graphs and tables. At 95% confidence level, the regression results generated a correlation coefficient, R=0.629 indicating a moderate positive relationship between tax regulations enforcement and tax compliance by Agri-business SMEs in Nyeri County, Kenya. Coefficient of determination, R2, was found to be 0.395 showing that 39.5% of variation in tax compliance was explained by tax regulations enforcement. The study thus concluded that tax regulations enforcement affected tax compliance among SMEs in Nyeri County. The study recommends more inspections and stiffer penalties for non-compliance. Findings of this study will be used by stakeholders including owners and employees of SMEs, government, scholars and other researchers.