Raila pays Sh3.4m tax arrears

Prime Minister Raila Odinga on Monday paid Sh3.4milion in outstanding tax as he called on other Members of Parliament to follow suit.

Gachoka MP, Mutava Musyimi has also paid Sh1.9m as Kenya Revenue Authority piles pressure on MPs to pay up.

Mr Odinga said it was not his mistake he had not paid up since August 27 2010 when the new constitution was promulgated and that someone "was sleeping on the job at Kenya Revenue Authority (KRA)."

He said KRA should have informed Parliament in good time instead of waiting to put MPs in the 'uncomfortable position' of having to pay too much money.

"Nobody is above the law. Not even the President or the Vice president," Mr Raila told the press at his office in Nairobi.

He urged other MPs to pay in line with the new constitution.

Judges have already bowed to pressure and agreed to pay taxes, leaving MPs isolated in their opposition to the move.

Chief Justice Willy Mutunga who is not affected by the demand for back taxes by the Kenya Revenue Authority (KRA) has asked the taxman to compute the amounts owed by judges.

It is understood that the Chief Justice believes that no Kenyan should be exempt from taxation.

Like MPs, judges have also been anxious over the taxman’s announcement this week that they are expected to pay tax on their allowances backdated to August 27 last year, the date of the Constitution’s promulgation.

KRA has twice attempted and failed to have MPs pay tax. And in both attempts, the efforts were thwarted by court rulings because the old Constitution allowed the exemptions. 

That is why the President, MPs, commissioners and judges have enjoyed tax exemptions.

But this is no longer the case as the new constitution clearly states in Article 210(3) that “No law may exclude or authorise the exclusion of a State officer from payment of tax.”