Amid Economic Struggles, Kenyan President Accuses Tax Agency of Corruption

Kenyan President William Ruto has accused employees of the country’s tax collection agency, the Kenya Revenue Authority (KRA), of engaging in corruption and colluding with tax evaders, which he believes has resulted in reduced government revenue. During a live-streamed event with KRA’s management and board members, President Ruto expressed his concerns about the prevalence of bribery, collusion, and corruption within the operations of the agency. Since taking office in August, Ruto has faced challenges related to growing government debt, revenue collection shortfalls, and high prices of essential commodities, leading to economic strain and public protests.

Under Ruto’s predecessor, Uhuru Kenyatta, Kenya’s external debt reached $34 billion as of January, contributing to the current debt burden. Annual interest payments on domestic debt have increased significantly, placing additional pressure on the government’s cash flow. Delayed salary payments for public service employees and protests by local authorities demanding timely cash disbursements from the national government have further highlighted the economic challenges.

President Ruto accused unscrupulous KRA staff of aiding corrupt taxpayers in evading their obligations, hindering government efforts to enhance tax collection. The agency has faced previous scrutiny regarding corruption, with a significant number of arrests made in 2019 related to tax evasion and bribery suspicions.

Ruto also criticized the agency’s resistance to digitalize revenue collection in the past, suggesting it aimed to preserve loopholes. The president emphasized his commitment to addressing these issues and highlighted the need for improved tax collection, noting that Kenya’s tax collection performance falls short compared to other nations such as South Africa.

While the KRA has not released its latest tax collection figures, local media reports suggest it collected 1.57 trillion shillings ($11.5 billion) in the ten months leading up to April. To meet the government’s target of 2.1 trillion shillings by the end of June, the agency has two months remaining. In an attempt to boost revenue, Ruto’s administration has proposed tax increases, which have generated criticism from citizens and the opposition.