How KRA lost Sh1 trillion in tax refunds for milk and bread

The Chairman of the Kenya Revenue Authority, Anthony Mwaura, has said that top employees were terminated after the taxman uncovered questionable tax breaks and reimbursements that had been provided to people during the previous administration.

Mwaura singled out significant actors in the bread and milk sectors who were reportedly profiting from agreements they had reached with top KRA officials.

He said that a questionable sum of Sh5.3 billion was distributed as tax refunds as recently as the previous week.

"Companies are dealing with milk and bread that were issued tax refunds totaling 5 billion Kenyan shillings as recently as the previous week."

"This is an egregious misuse of authority on your part. We are pressuring Kenyans to pay their taxes, while the administration of the KRA was unlawfully giving individuals billions of dollars back."

"Because of this, we decided that enough was enough and got rid of them."

Mwaura is quoted as saying that "we will, with the cooperation of Treasury, guarantee that unjustified tax exemptions are overturned."

According to Mwaura, the nation has suffered a loss of around one trillion shillings over the last three years as a result of tax abandonment, exemptions, and refunds that have been offered to both domestic and foreign businesses.

The board of directors of the KRA is intent on recouping this sum, and they are ready to take any steps required to accomplish so.

" Others believe we are fighting a hopeless cause, but they will be shocked when they see the results of our efforts."

 

"I have goals to accomplish with my board, and I will not give in to temptation."

Mwaura is quoted as having declared, "We are determined to see the nation become self-reliant on its taxes, even if it takes sacrificing our lives to do it."

The KRA chairman emphasized that they have increased their goal from the previous level of Sh2.2 trillion to the current level of Sh2.7 trillion, which is an increase of Sh400 billion from the prior level.

For the tax collector to accomplish this objective, the plan that they have devised comprises clamping down on tax evaders, prohibiting illegitimate refunds and superfluous exemptions, and combating corruption within the organization's employees.

The board has decided to place their bets on the new team that will be led by acting Commissioner General Rispah Simiyu. 

Simiyu was appointed after her predecessor, James Githii Mburu, resigned from his position.

• Pamela Ahago was appointed the Acting Commissioner of Domestic Taxes. 
• David Mwangi, the Acting Commissioner of Customs and Border Control. 
• David Yego, the Commissioner in charge of Intelligence, Strategic Operations, Investigation, and Enforcement. 
• Nancy Ng'etich, the Acting Commissioner of Corporate Support Services.
• Dr. Mohammed Omar was retained as the Commissioner of Strategy Innovation and Risk Management. 
• Dr. Fred Mugambi Mwirigi retained the Commissioner Kenya School Revenue Administration position. 
• Paul Matuku retained the Commissioner Legal Services and Board Mi Coordination Board Chairman.