This archive report was first published on 4 October 2019.
Kenya Revenue Authority (KRA) has launched an investigation into 11 public universities over Sh9.7 billion in unpaid Pay as You Earn (PAYE) taxes.
According to KRA's Commissioner for Domestic Taxes, Elizabeth Meyo, the probe targets the vice chancellors of the universities, who are responsible for remitting the taxes.
The universities in question are University of Nairobi, Kenyatta University, Technical University of Kenya, Multimedia University, Garissa University, Pwani University, Jomo Kenyatta University, Egerton University, Maasai Mara University, Moi University, and Rongo University.
Ms. Meyo stated that some of the universities have reached out to KRA and agreed on payment plans, reducing the amount owed from Sh10.4 billion to Sh9.7 billion.
As of July to September 2019, six of the universities had paid Sh730 million to the taxman.
Ms. Meyo urged the universities that have not contacted KRA regarding their tax matters to do so immediately or face prosecution.
The taxman is also targeting the directors of companies that have transacted with the universities, with the aim of prosecuting those who have not remitted Withholding Value Added Tax (VAT).
Ms. Meyo emphasized that investigations into these companies are ongoing, and those found culpable will be charged in court.
The vice chancellors will also be investigated individually for their tax compliance status.
Ms. Meyo noted that KRA has implemented an aggressive tax recovery strategy, with several directors of firms, including Keroche Breweries, having been charged over tax evasion in the recent past.
