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Arrest tax cheats

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Posted Tuesday, July 14 2009 at 18:36

Three days ago, the Sunday Nation carried a detailed story about massive corruption at Eldoret Airport. This did not come as a total surprise as the airport has in the past been shut down due to similar activities.

Apparently, criminals – for that is exactly what tax evaders are – have been using the international entry point to land goods worth billions of shillings, and in the process robbing the Exchequer of up to Sh100 million a month.

Clearly, it is easy for the culprits to politicise the matter in an attempt to seek impunity, but two unrelated events tell us we cannot afford to sweep the matter under the carpet.

On the same day the story appeared, we reported US President Barack Obama lambasting Kenya over corruption. The next day, the Kenya Revenue Authority published its annual tax collection figures, indicating it was Sh12 billion below target.

Whatever benefits the shops, especially in Eastleigh, have for the economy, not paying tax is plain economic sabotage. The crooked traders are denying the government revenue while illegally enriching themselves and their KRA collaborators.

Besides, the ill-gotten riches may threaten national security. This is not the kind of environment serious long-term investors wish to work in. If we do not weed out the racketeers, our economic and security outlooks will be very bleak indeed.

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