Tycoons have returned an estimated Ksh1 Trillion to the country, taking advantage of an amnesty provision by the government that was offered for the last three years.
The around 16,000 individuals were not required to explain the source of the money or the account that the money was hidden.
"We have received over 16,000 applicants with the amount repatriated so far standing at Ksh1,014,058,103,551. The incentive was meant to encourage Kenyans to repatriate wealth back to the country for the purposes of development,” a statement by KRA read.
Business Daily quoted a report by an American think tank, The National Bureau of National Research which stated that by 2018, Kenya's super-rich had stashed an approximate of Ksh5 Trillion in offshore accounts.
By returning the money into the economy the tycoons have effectively cleaned their wealth and at the same time evaded questions over the sources of the wealth and any tax obligations.
Fred Omondi of Delloit East Africa revealed that most tax audit firms in the country had not received any significant enquirers from Kenyans willing to repatriate wealth back home.
“We haven’t seen a lot of uptake of the amnesty given that most income earned abroad is not subject to taxation in Kenya. Until the money is invested here and a taxable income generated, there is no tax revenue to expect,” Omondi added.
The amnesty was announced in 2016 by the Treasury CS Henry Rotich and has been extended twice since then as the targets failed to take up the offer in fear of being subjected to the prosecution under the Crimes and Anti-money laundering act.
KRA then issued the guideline of the repatriation and signed certificates for those who applied for the repatriation during the period.
The amnesty applied for those who declared income from abroad, including a home for the period up to December 2018.
