This archive report was first published on 22 August 2019.
On August 22, 2019, the Kenya Revenue Authority (KRA) issued a statement defending its ongoing crackdown on suspected tax evaders.
The taxman emphasized that its primary goal is to ensure tax compliance among all Kenyans, rather than targeting specific individuals or businesses.
“Kenyans should reject the narrative that KRA is fighting any individual or business. On the contrary, KRA has the additional responsibility of trade facilitation under which we support a business environment that is conducive for growth of business, which further results in increased taxes,” said the taxman.
According to KRA, the crackdown is aimed at individuals or businesses that have deliberately chosen to evade taxes through various practices, including failure to disclose fully the income they have earned or mis-statement of expenses to reduce the taxable income and therefore evade taxes.
The taxman is also targeting those who have failed to pay the correct import taxes through concealment of goods, misdeclarations, and undervaluation among other schemes, as well as those who have failed to withhold and remit taxes as required by law.
“All we desire is that all eligible taxpayers make every effort to pay their rightful share of taxes. We must all contribute in an equitable manner to the development of our Country,” said KRA.
The crackdown has been met with mixed reactions, with investigative agencies targeting high-flying and wealthy individuals, including Keroche Breweries CEO Tabitha Karanja and her husband Joseph Karanja, who are accused of evading taxes amounting to Ksh.14.4 billion, and Nairobi billionaire businessman Humphrey Kariuki, who has been charged with evasion of taxes totaling Ksh.41 billion and has dismissed the allegations.
