KRA eyes Sh8b from State firms

A number of Semi-autonomous Government Agencies (Sagas) and regulatory bodies owe the taxman Sh8.6 billion in unremitted taxes.

In a memo dated November 14, the Kenya Revenue Authority (KRA) says it plans to institute legal measures against non-compliant entities.

The memo also addresses the issue of surplus funds, noting that: “The Cabinet Secretary for National Treasury amended Regulation 219 (2) of the PFMA Act 2012 vide legal notice 90 of June 13, 2019 and provided October 31 at the end of each financial year as the due date for payment of surplus funds.”

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It adds: “Seven-day notices were issued to the regulatory entities on September 23, 2019 requiring them to pay the arrears and current surplus by the due date.”

Regulate operations

Sagas help to regulate operations within specific sub-sectors. Some of the agencies that have cleared their arrears include the Kenya Civil Aviation Authority and the Communications Authority of Kenya.

Leading the pack of non-compliant agencies is the National Construction Authority, which is yet to pay Sh1.8 billion, while the Kenya Bureau of Standards owes Sh991 million and the Water Resources Authority has arrears of Sh566 million.

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The Energy and Petroleum Regulatory Authority owes Sh243 million, the Kenya Maritime Authority owes Sh607 million while the National Transport and Safety Authority is yet to pay Sh1.6 million.

The Kenya Universities and Colleges Central Placement Service owes Sh283 million, while the Public Procurement Oversight Authority is yet to pay Sh313 million.

The National Campaign Against Drug Abuse Authority owes Sh2.9 million, the Water Services Regulatory Board has a bill of Sh42 million, the National Environment Management Authority is yet to pay Sh51 million while the Export Processing Zone Authority owes Sh55 million.

The taxman is also seeking Sh35 million from the Sacco Societies Regulatory Authority, Sh7.9 million from the Kwale Water and Sewerage Company, Sh1.1 billion from the Nairobi City Water and Sewerage Company, Sh5.8 million from the Garissa Water and Sewerage Company, Sh2.5 billion from the Kenya Forest Service and Sh317 million from the Pyrethrum Board of Kenya.

Several years

The Kenya Industrial Research and Development Institute has a bill of Sh25 million, the Kenya Meat Commission owes Sh47 million, while the Kenya Safari Lodges and Hotels is yet to pay Sh30 million.

KRA further states that Mombasa Water Supply and Sanitation Services Company owes Sh16 million, Tavevo Water owes Sh23 million, Nyandarua Water and Sanitation Company owes Sh277,000, and Olkejuado Water and Sewerage Company is yet to pay Sh2.4 million.

Last month, the agency said five sugar companies owe Sh20.8 billion in tax arrears. The amount, KRA elaborated, includes value-added tax, Pay As You Earn and excise duty, among other payments that have accumulated over several years.

This initiative comes in the wake of intensified efforts from KRA Commissioner General James Mburu (pictured) to ensure that all eligible taxpayers pay their fair share of taxes.

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Energy and Petroleum Regulatory AuthorityKRAKenya Revenue Authority