The Kenya Revenue Authority (KRA) Kisumu branch is embroiled in a tax fraud scandal that threatens to shake its integrity.
Investigations reveal that staff members collude with local companies to evade taxes, costing the government millions.
These cartels exploit loopholes by under-declaring income, overstating deductions, and understating employee numbers.
Kenyan Focus promises an exclusive exposé to reveal the names behind these schemes. How deep does the rot go, and what’s being done about it? Here’s everything you need to know.
KRA Tax Fraud Tactics and Key Enablers
Corrupt KRA officials at the Kisumu branch allegedly enable businesses to escape their tax obligations. Insiders accuse some staff of harmonizing tax arrears for a fee.
For example, Pride Kings Security Services, owned by Maurice Osano, reportedly owes millions in taxes but had its liability reduced to less than KSh 1 million through this scheme.
Such practices include:
- Under-declaring or not declaring income.
- Overstating deductions to lower taxable income.
- Falsifying employee numbers to reduce payroll taxes.
- Filing dishonest tax reports.
Kenyan Focus has unearthed shocking details about security firms, motor vehicle dealers, and other businesses in Kisumu engaging in these illegal practices. These firms exploit their workers by paying low wages despite securing lucrative contracts.
Pride Kings Security Services in the Spotlight
Pride Kings Security Services faces scrutiny for both tax evasion and labor violations. Insiders claim the firm delays salaries, pays employees poorly, and mistreats its security guards.
This case calls for intervention from both the Ethics and Anti-Corruption Commission (EACC) and KRA Commissioner General Humphrey Wattanga Mulongo.
The Director General of Private Security, Fahazul Mohamed, has also been urged to investigate the firm for its treatment of employees.
Authorities have asked investigators to use this scandal as a starting point to clean up the Kisumu branch.
Government Measures and Public Action
President William Ruto recently emphasized the need for citizens to report corruption and tax evasion.
During Taxpayers’ Day, he urged Kenyans to join the fight against practices that derail economic growth.
To combat these crimes, KRA launched iWhistle, an online reporting platform. This tool allows both employees and the public to anonymously report tax evasion, bribery, abuse of office, and other tax-related misconduct.
Whistleblowers are encouraged to provide information if they see, hear, or suspect wrongdoing.
Call for Accountability
With over 200 KRA staff members under investigation for misconduct linked to corruption, stakeholders demand accountability.
Insiders challenge KRA leadership to form a special team to investigate Kisumu’s fraudulent activities thoroughly.
The ongoing exposé by Kenyan Focus highlights the extent of the problem and the need for urgent reforms.
Meanwhile, motor vehicle dealers and other Kisumu-based businesses are also under scrutiny for tax evasion. These actions rob the country of resources critical to development.
Taking Action on KRA Tax Fraud
- Citizens should use platforms like iWhistle to report suspected tax fraud.
- The government must act swiftly to restore public trust in KRA.
- Employers must honor their commitments to employees and pay fair wages.
The KRA Kisumu branch now faces the challenge of proving its commitment to integrity and justice. Will this scandal be the turning point? Only time will tell.