Setting The Record Straight On Corruption Allegations Against KRA Staff

Recent social media posts and blogs have disseminated unsubstantiated allegations of corruption against senior Kenya Revenue Authority (KRA) staff. These claims, often lacking credible sources and weight, raise critical questions about their true intent, especially given the robust and accessible channels available for reporting genuine concerns.

In the recent past, KRA has publicly highlighted measures it has taken to fight corruption and tax evasion. The Authority has made significant strides in its unwavering commitment to combating corruption and sealing revenue loopholes. For example, the Authority’s investment in technology, exemplified by the web-based iWhistle system, allows any individual, staff, or public to anonymously report corruption and tax evasion cases. This system has proven highly effective, facilitating the collection of KShs. 6.8 billion from 821 anonymously reported cases in the last financial year alone. Through iWhistle and partnerships with law enforcement, KRA reported that it has successfully prosecuted culprits and dismissed staff found guilty of misconduct.

Furthermore, KRA has implemented rigorous lifestyle audits to identify illicit wealth among staff and has incentivized the reporting of tax malpractices. A reward scheme offers informers 5% of the tax recovered, up to a maximum payout of KSh 5 million per case. KRA also recognizes and celebrates staff who promote integrity through our Integrity Award Framework. Given these established and rewarding formal channels, one must question the motivation behind reporting serious allegations through informal articles or social media posts.

The timing of these attacks coincides with significant reforms within the KRA. For example, earlier this year, KRA restructured its Domestic Taxes Department, creating the Micro and Small Taxpayers (MST) department to reaffirm its commitment to supporting MSMEs, a critical segment of our economy. Mr. George Obell, a seasoned tax expert with over 28 years of experience in strategic leadership on domestic and international tax policies, was appointed to lead this new department.

Mr Obell’s extensive background includes serving as Deputy Commissioner of the Medium Taxpayers Office (MTO) at KRA, and internationally, as a tax expert to the United Nations Committee of Experts on International Cooperation in Tax Matters. He currently chairs the African Tax Administration Forum (ATAF) VAT Technical Committee and played a pivotal role in establishing Kenya’s International Tax Office unit. Throughout his distinguished career, both locally and internationally, Mr. Obell has consistently demonstrated the highest integrity and received awards for outstanding performance.

Since he was appointed as the Commissioner of MST, Mr. Obell has already initiated transformative programs to simplify tax processes that have enhanced compliance for MSMEs, fostering a level playing field for all traders. These initiatives that have been welcomed by taxpayers have yielded tangible results, including a surge in MSME compliance and a corresponding growth in revenue, especially VAT obligation.

Mr Obell’s appointment and his proactive measures to seal loopholes have disrupted those who previously exploited the system for personal gain. The negative publicity campaign against him and other hard-working staff, therefore, appears to be a desperate attempt by individuals with vested interests, primarily tax evaders, to undermine someone dedicated to upholding national revenue and fairness.

Kenyans must therefore not be misled by such propaganda. In a nation dependent on revenue for economic development, all citizens must fulfill their tax obligations, and KRA officials must be allowed to execute their duties without bias. Those with genuine cases to report should utilize the established, effective channels provided by the KRA to safeguard our institutions and national resources, rather than resorting to the spread of gossip and propaganda through disreputable means. Public office demands respect from both those in service and those being served.

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