This archive report was first published on 22 September 2019.
On September 22, 2019, the Kenya Revenue Authority's (KRA) conflicting tax assessments on the nominee for the National Land Commission chairman sparked important questions about the tax compliance system.
The KRA's zeal in questioning Mr. Gershom Otachi's clearance, despite the appointment requiring multi-agency vetting, highlights the need for the agency to institutionalize its efforts to plug holes in revenue collection.
Kenya's public debt stood at Sh5.8 trillion in June, and Treasury chiefs indicated that the figure would increase by Sh1.84 trillion by August 2022 to Sh7.6 trillion, putting a strain on the taxman.
The conflicting compliance assessments present an opportunity for the KRA to run a painstaking audit on its tax compliance regime and address any leakages in its collection architecture.
A weak system would heap a disproportionate burden on compliant taxpayers, and we hope this matter will be resolved fast, with the systems audited and findings made public to allay fears that the tax collector could be contributing to loss of revenue.
