11 Public Universities Accounts Frozen Over 9.7 Billion Tax Arrears

At least 11 public universities are said to have tax arrears of 9.7 billion shillings, which has prompted the taxman to freeze their bank accounts.

According to the Kenya Revenue Authority, the affected public universities have not been tax compliant as required by the law, with some not paying taxes for more than three months.

“The initial amount owed to the Kenya Revenue Authority was Sh10.4 billion. So far, six of the 11 universities have paid 730 million shillings to the taxman between July and September 2019.”

“The institutions of higher learning who have not reached out to KRA in regard to their tax matters are urged to do so with immediate effect or face the law,” said Elizabeth Meyo, Commissioner for Domestic Taxes.

The Vice-Chancellors of the universities whose accounts have been frozen will also be investigated on how they have been remitting taxes at individual levels.

Some universities whose accounts have been frozen have been struggling financially, finding it difficult to even pay their employees and bills.

The universities whose account have been frozen are

1. Kenyatta university
2. University of Nairobi
3. Jomo Kenyatta University of Agriculture and Technology
4. Moi University
5. Egerton university
6. Technical University of Kenya
7. Multimedia university
8. Masaai Mara University
9. Pwani University
10. Garissa University
11. Rongo University

The move by KRA comes after the ministry of education had announced to introduce changes in the institutions of higher learning.

The Cabinet Secretary of Education George Magoha said that some public universities are having insignificant positions, which are supposed to be revised to reduce over expenditure.

KRA is currently striving to bring tax evaders to book owing to the pressure from the Government to ensure efficient tax collection and meet the target set by the National Treasury.

“KRA has recorded some significant improvement in its drive to ensure all Kenyans are tax compliant. We urge eligible taxpayers to comply,” Commissioner Meyo said.

In 2019, the taxman has tightened its grip and arrested several tax offenders including 80 of its own employees who were accused of colluding with members of the public.

KRA had announced that it targets to arrest and prosecute 600 individuals on grounds of tax evasion before the end of the year. At least 10 governors and renown businessmen are among those on KRA’s radar.

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