Officials at Kenya Revenue Authority (KRA) have been accused of colluding of some businessmen in tax evasion that has cost the country billions of shillings in taxes.
According to the office of the DPP, about 80 middle-level and top Kenya Revenue Authority (KRA) managers are under investigation over their role in helping individuals avoid paying taxes.
The ongoing probe involves both the current and former employees who served the agency between 2014 and 2018.
The probe comes amid numerous questions of KRA accusing businesses and individuals of not remitting taxes despite some of them having the relevant documents that show that they have been paying taxes.
In July, Kenya Revenue Authority accused a total of 27 betting firms of not paying taxes, allegations that led to the suspension of operational permits for all of them (11 have since been allowed to operate.)
Ironically, among those suspended were SportPesa, which had in the past three years, been awarded by the same KRA as the best taxpayer in Kenya. SportPesa was also key in Kenya’s sporting sector through the sponsoring of teams such as Gor Mahia and AFC Leopards.
During the month of August, officers from DCI arrested businessman Humphrey Kariuki and arraigned him in court on allegations of evading to pay taxes to the tune of 41 billion shillings. The amounts quoted raised more questions than answers with many stakeholders of the opinion that KRA is out to frustrate local businesses.
A few days later, CEO for Keroche Breweries, Tabitha Karanja and her husband were arrested and arraigned over claims that they evaded paying taxes to the tune of 14.5 billion shillings, allegations that they have denied.
The accused persons have pleaded their innocence and have provided documents to show that they have been paying taxes. KRA has over the years been missing its revenue collection target and the government works to fill the existing budget deficit.