Kenya’s President William Ruto accused the tax collection agency’s staff of bribery, corruption, and tax evasion, reducing government revenue.
Due to rising government debt repayments, revenue shortfalls, and high commodity prices, Ruto, who was elected last August to help the poor, has had a rough start to his term.
In recent months, public servants have complained of salary delays, and local authorities have threatened to shut down to protest delayed cash disbursements from the national government.
“Collusion, wanton bribe-taking and general corruption continue to pervade operations of KRA (Kenya Revenue Authority),” Ruto told KRA’s management and board members at a live event on his social media pages.
He said KRA employees who helped corrupt taxpayers evade taxes were hindering the government’s tax collection efforts.
Kenya’s tax collection agency is under investigation for corruption. 75 KRA employees were arrested in May 2019 for aiding tax evasion and bribery.
Ruto also accused KRA staff of resisting and sabotaging revenue collection digitization to prevent the government from closing loopholes.
“I have to be candid because I have a job to do,” the president said.
KRA has not released its latest tax collection figures, but local media outlets said it collected 1.57 trillion shillings ($11.50 billion) in the 10 months to April, leaving it two months to meet the government’s target of 2.1 trillion by June.
Ruto said Kenya lags behind South Africa in tax revenue as a percentage of GDP.
His administration will present spending proposals to parliament next month with a slew of tax increases to boost revenue, angering citizens and the opposition.
“The (finance) bill prepared by the Kenya Kwanza regime is a punishment that Kenyans cannot and should not entertain,” the opposition Azimio coalition said this month, referring to Ruto’s political coalition.
