Taxman’s headache over illicit cash flows and transfer pricing

A Kenya Revenue Authority staff serves a client at an iTax support centre yesterday. The centre will serve Central and Northern Kenya regions. PHOTO: JOHN GATHUA/ STANDARD.

The spectre of illicit cash flows into Kenya and illegal transfer pricing by the multinationals pose the greatest challenge to the taxman according to Kenya Revenue Authority (KRA) Commissioner-General John Njiraini.

This is coupled with globalisation that has seen multinationals grow more powerful – some whose capitalisation is bigger than the Gross Domestic Products (GDP) of some developing countries.