Graft rife at KRA, says taxman

Corruption within the Kenya Revenue Authority is rife, according to Commissioner General Michael Waweru who revealed that more than 162 officers involved in corrupt practices have faced disciplinary action in the last 18 months.

The corruption stems from "inappropriate relationships" between KRA staff and tax payers, according to the authority boss.

As a result, the tax collector was experiencing one of the highest staff turnovers among the public institutions in the country Mr Waweru explained.

“Over the last 18 months, the Authority has taken disciplinary action against 162 members of staff for corruption, theft, fraud and complicity in tax evasion, out of which 54 per cent are customs officers,” according to Mr Waweru.

“We do appreciate that tax collection is not an easy task. We are faced with numerous challenges some of which touch on issues of integrity,” he stated at a press briefing at his office Saturday.

The Authority was reacting to an expose titled “the port of impunity” aired on KTN. In the expose, clearing and forwarding agents Salhiya is accused of colluding with KRA staff to evade tax by under declaring the goods.

In this instance, the agent had declared a tax payment of Sh199,000 instead of the correct figure of Sh2 million according to Commissioner of Customs Wambui Namu who accompanied the Commissioner general to the press briefing.

In an organisation the size of KRA, Mr Waweru observed that there were bound to be elements whose intentions may be contrary to its goals.

“It is against this backdrop that KRA has instituted measures to eradicate corruption within its ranks and ensure that it collects all the revenue due to the government.”

The Commissioner General said the Authority was tightening the noose to seal all corruption loopholes that the perpetrators have been exploiting to defraud the government.

Among the measures, he said, was the establishment of mechanisms that reduce the time the tax payers take while dealing with the Authority.

“Among the initiatives taken include introduction of online services in lodgment of customs entries, import declaration application, filing of income tax and VAT returns and payment of taxes,” Mr Waweru said.

Besides, the hailed the development of an Integrity Action Plan undertaken jointly with the World Customs Organisation and the Commonwealth Secretariat for working towards eradicating corruption at the Times Towers.

Under the Plan, Mr Waweru disclosed the Authority has also developed an Integrity Testing Programme undertaken jointly with the Kenya Anti-Corruption Commission to test the integrity of its staff.

It has also instituted Corruption Prevention Committees in all its departments and regions and carries corruption risk assessment on a regular basis.

He appealed to taxpayers to reign in those within their midst who are intent in evading tax.

The Authority signed a Memorandum of Understanding with the Freight Forwarding and Warehousing fraternity to enforce tax compliance by its key stakeholders.

He warned taxpayers to comply or face legal action.