DCI boss George Kinoti on Wednesday revealed how Kenya Revenue Authority (KRA) lost Ksh100 Billion in a short period of six months.
The tax body is reported to have lost the money in a tax evasion racket by unscrupulous traders and corrupt officials at the Mombasa port.
“In the past six months alone, Kenyans may have lost about Sh100 billion in tax evasion and sale of substandard goods,” Kinoti stated.
[caption caption="Containers at the Mombasa port"]
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The rogue officials facilitate false declarations to attract less fees thus denying the taxman required taxes such as import duty.
They also allow in counterfeit goods in exchange for cash kickbacks.
Investigations into Kenya Revenue Authority (KRA) officials who are responsible for collecting taxes have commenced.
Others targeted include Kenya Ports Authority (KPA) and Kenya Bureau of Standards (Kebs) officials.
“We received a letter from the DCI asking for documents, which we have since provided. I am also aware that some of my officers will be required to record statements,” KPA Managing Director Daniel Manduku told The Standard.
Several high-profile individuals are lined up for possible prosecution within two weeks regarding the matter.
“A comprehensive report on our findings will be released by next week. We will have recommendations therein on how we can seal these loopholes that are causing losses running into billions of shillings,” DCI boss remarked.
[caption caption="People visiting KRA headquarters at Times Tower in Nairobi"]
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On Monday, KRA and DCI pledged their commitment to fighting tax evasion and corruption.
“The collaboration focuses on varied aspects including the management of customs clearance operations and the tackling of illicit trade and both importation and local manufacturer level,” a joint statement read.
