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KRA Faces Scrutiny Over Uncollected Sh158 Billion in Taxes

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 26 September 2019.

On September 25, 2019, the National Assembly's Public Investment Committee (PIC) grilled the Kenya Revenue Authority (KRA) over its failure to collect Sh158 billion in taxes during the financial year ending June 2015.

The committee criticized the taxman for a systematic failure that led to the uncollected billions, with outgoing Auditor-General Edward Ouko's report indicating that the accuracy of the Sh158 billion figure as of June 30, 2015, could not be ascertained.

KRA commissioner-general Githii Mburu appeared before the committee and explained that the authority is refining its data on the debts, citing historical challenges with its legacy system.

However, the taxman was also on the spot over Sh14 million it irregularly refunded to Ainushamsi Energy Limited as VAT in respect of input tax attributed to zero-rated fuel.

Committee chairman Abdulswamad Nassir (Mvita) called the move 'irresponsible,' questioning why KRA did not do due diligence on the company to confirm whether it exports oil or not.

MPs Paul Katana (Kaloleni) and Kwenya Thuku (Kinangop) also queried the payment to a company that was not exporting oil, with Thuku terming KRA management as arrogant and disorganized.

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