Unpaid VAT refunds soar to Sh18 billion

By JAMES ANYANZWA
Government is sitting uneasy on over Sh18 billion in unpaid VAT refunds — leaving businesses in serious cash-flow problems.

And it is emerging that the process of clearing this backlog will take even longer than expected after the Government abolished the Withholding VAT system in July last year where government ministries, departments, and parastatals were used as tax agents.
This comes at a time Kenya Revenue Authority (KRA) is facing legal suits over unpaid VAT refunds.