Kenyan President Accuses Tax Agency of Corruption Amid Economic Struggles

Kenyan President William Ruto has accused the Kenya Revenue Authority (KRA) of corruption and collusion with tax evaders, alleging that such activities have led to a reduction in government revenue. During a live-streamed event, President Ruto expressed concerns about corruption, bribery, and collusion within the KRA, hindering government efforts to boost tax collections.

Ruto, elected in August with a pledge to uplift the poor, has faced challenges as the economy grapples with growing government debt, revenue collection shortfalls, and high commodity prices, leading to public protests. As of January, Kenya’s external debt reached $34 billion, contributing to a substantial debt profile inherited from his predecessor.

Annual interest payments on domestic debt have surged over the past decade, straining the government’s cash flow. Public service employees have experienced delays in salary payments, and local authorities have threatened to shut down operations due to delayed cash disbursements from the national government.

President Ruto accused KRA staff of assisting corrupt taxpayers in evading payments and resisting previous attempts to digitize revenue collection. The president emphasized the need to address these issues candidly, asserting that corruption within the tax agency is impeding government revenue.

While the KRA has not responded to the allegations, Kenyan authorities have been actively combating corruption. In May 2019, 75 KRA staff were arrested on suspicion of abetting tax evasion and bribery.

The president disclosed that efforts to enhance tax collections are jeopardized by unscrupulous KRA staff, urging the need for transparency and accountability in revenue collection. Despite local media reports indicating that KRA collected 1.57 trillion shillings ($11.5 billion) in the ten months to the end of April, meeting the government’s target of 2.1 trillion shillings by the end of June remains uncertain.

To address revenue challenges, President Ruto’s administration has proposed tax increases, sparking discontent among citizens and the opposition. The accusations against the KRA underscore the broader economic struggles and efforts to strengthen the country’s financial position.

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