Blow to KRA as lay-offs cut Tullow’s tax burden by 90pc

Massive lay-offs by Tullow Oil Kenya over the last three years have resulted in a major drop in the taxes that the oil company pays to the Government.

The amount of Pay as You Earn (PAYE) taxes that the firm paid to the Kenya Revenue Authority (KRA) declined by 90 per cent over the 2018/19 financial year to Sh111 million from Sh1.42 billion paid over the previous financial year. Between 2017 and last year, the exploration firm reduced its workforce by 50 per cent, which it said was necessary after the end of a resource and labour intensive phase.