This archive report was first published on 18 November 2019.
Kenya Revenue Authority (KRA) is cracking down on state agencies that owe it Sh8.6 billion in unremitted taxes. The move comes as part of intensified efforts to ensure all eligible taxpayers pay their fair share of taxes.
According to a memo dated November 14, 2019, KRA plans to institute legal measures against non-compliant entities. The memo also addresses the issue of surplus funds, noting that the Cabinet Secretary for National Treasury amended Regulation 219 (2) of the PFMA Act 2012 vide legal notice 90 of June 13, 2019, and provided October 31 as the due date for payment of surplus funds.
Seven-day notices were issued to the regulatory entities on September 23, 2019, requiring them to pay the arrears and current surplus by the due date. Some of the agencies that have cleared their arrears include the Kenya Civil Aviation Authority and the Communications Authority of Kenya.
Leading the pack of non-compliant agencies is the National Construction Authority, which is yet to pay Sh1.8 billion, while the Kenya Bureau of Standards owes Sh991 million and the Water Resources Authority has arrears of Sh566 million. The Energy and Petroleum Regulatory Authority owes Sh243 million, the Kenya Maritime Authority owes Sh607 million, and the National Transport and Safety Authority is yet to pay Sh1.6 million.
The Kenya Universities and Colleges Central Placement Service owes Sh283 million, while the Public Procurement Oversight Authority is yet to pay Sh313 million. The National Campaign Against Drug Abuse Authority owes Sh2.9 million, the Water Services Regulatory Board has a bill of Sh42 million, and the National Environment Management Authority is yet to pay Sh51 million.
Other agencies with outstanding tax bills include the Export Processing Zone Authority, the Sacco Societies Regulatory Authority, the Kwale Water and Sewerage Company, the Nairobi City Water and Sewerage Company, the Garissa Water and Sewerage Company, the Kenya Forest Service, and the Pyrethrum Board of Kenya.
