Kenya’s Richest Owe the Taxman over 10 Billion Shillings in Tax Arrears as KRA Burdens the Middle Class

President Uhuru Kenyatta recently directed the Kenya Revenue Authority (KRA) to track the society’s high net-worth individuals whose lifestyles are not in tow with the taxes they pay.

KRA has since strategized on following the directive which seeks to recover billions of tax arrears from the stinking-rich club.

The taxman has focused on over 50 high-net-worth individuals and is ordering them to pay over 10 billion shillings of accumulated tax arrears.

Kenya’s richest have been accused of using the courts to evade paying taxes making it a burden for the middle class in the society.

The elite group is frustrating efforts by the taxman to collect taxes costing the country a chunk of its finances. An example of such elite individuals who are giving KRA sleepless nights is Professor Tom Ojienda. On his case, the Professor got a court order from Justice Eric Chaacha Mwita that forbid KRA officials, agents, servants and employees from starting any civil or criminal proceedings, arresting, summoning, questioning, threatening or in any way harassing (Prof Ojienda) with respect to any tax issues or questions for the period 2009 to 2016”. 

Tom Ojienda allegedly owes the taxman 443.6 million shillings as tax due for the duration 2009 to 2016, and 378.6 million shillings for the duration 2011 to 2016. The court order protects Prof Ojienda which in turn becomes an obstacle to the taxpayer to operate their duty.

KRA now terms Ojienda as non-tax compliant given his adamancy in paying up the arrears. Prof Tom is an influential member of the affluent society. He is a member of the Judicial Service Commission (JSC), a body that approves the appointment and promotion of judges and magistrates.

The Treasury has not yet gazette members of the Tax Appeals Tribunal yet the three-year term of 19 of its members expired on 1st April which means that it is only the Tribunal’s chair, Mr. Moses Buyuka Obonyo, whose term will expire in April 2020, is legally in office.

KRA could be burdening the middle class to cover for the influential richest who have the power and wealth to frustrate the system and evade taxes as the Government continues to introduce ridiculous taxes on Kenyans.