The Kenya Revenue Authority(KRA) has been asked to provide answers following the alleged theft of 9,686,358 excise stamps in the authority, sparking concerns over tax evasion and the possible influx of counterfeit goods into the market.
Nominated Senator Miraj Abdulrahman on Thursday tasked the Senate’s Standing Committee on Finance and Budget to investigate the authority and report to the Senate the possible existence of a tax-evasion ring that may have infiltrated the KRA’s systems, putting the government’s tax collection measures in jeopardy.
The senator is demanding that KRA provide answers to Kenyans, especially after title deeds were also reportedly stolen from the Government Printer by unknown persons in September 2024, with no information yet provided regarding the outcome of investigations.
Miraj has asked the Finance Committee to question KRA’s leadership to explain the theft and subsequently present the August House with a report on the safety of goods in the market.
The Senator also asked the Ali Roba-led Committee to outline the measures the tax collection body has taken to prevent further infiltration of its system and curb the theft and circulation of counterfeit goods in the Kenyan market.
Kenya has long struggled with illicit trade, which accounts for nearly 40 per cent of goods sold in the country.
Some of these goods are smuggled imports intended for transit but are diverted into the local market tax-free, while others are misdeclared as lower-value imports to evade taxes.
Locally manufactured counterfeits could also be linked to the stolen stamps. Fake products undermine consumer confidence and make Kenya a less attractive destination for investors.
The issue of unaccounted-for excise stamps has been a long-standing concern.
In 2022, during the annual Taxpayers’ Month at the Kenyatta International Convention Centre (KICC), President William Ruto questioned a revenue discrepancy.
”The trouble is that the government is selling 2.9 billion stamps, while people are selling the balance, which is approximately 7 billion stamps,” Ruto alleged.
KRA attempted to address counterfeiting by upgrading to enhanced-security excise stamps produced by Swiss firm SISCPA. These stamps, equipped with trace features, replaced older versions introduced in 2003, which were prone to forgery, despite the measures, revenue losses still persist.
