President William Ruto’s administration is now probing at least 300 companies associated with powerful individuals in the previous regimes over non-payment of taxes, the Sunday Nation has learnt.
Yesterday, National Treasury Cabinet Secretary Prof Njuguna Ndung’u and Kenya Revenue Authority (KRA) chairperson Anthony Ng’ang’a Mwaura confirmed that they are currently reviewing the companies which have been enjoying tax exemptions or have evaded paying their dues.
“There is a law governing exemptions. That is the one we are following strictly,” CS Ndung’u said.
The Sunday Nation understands that most of the companies which are likely to be affected in Dr Ruto’s tax shake-up are the ones which are owned by the country’s big families, with Mr Mwaura saying firms in the list belong to the ‘untouchables’ of former administrations.
According to Mr Mwaura, some of the companies have not been paying taxes since independence.
“Everyone has to come on board when it comes to paying taxes because even the President is paying his taxes, including myself. No one in Kenya Kwanza is being exempted from taxation and that is why very many companies of untouchable people of former administrations will have to pay tax now. There are people in this country who have not been paying taxes since independence,” said Mr Mwaura.
Some of the companies being investigated, he said, are those whose owners had enjoyed tax exemption by law and others whose owners were using their closeness with powerful persons in government to intimidate KRA officials.
Mama Ngina dare
Yesterday, in a rare public outburst, former First Lady Mama Ngina Kenyatta waded into the tax debate, daring the Kenya Kwanza government to sell her property “if I have not paid taxes.”
“Ukikosa kulipa ile unatakiwa kulipa, lazima vitu vyako vitachukuliwa na kuuzwa. Kwa hivyo hakuna haja…hakuna mambo ya kuwaharibia wengine majina ndio watu wasikike eti wanafanya kazi, wanaendesha nchi, hapana (If you fail to pay taxes, then your property can be taken and sold to pay off. So no need of mudslinging anybody so you can be seen to be working),” Mrs Kenyatta, the former president’s mother and widow of Kenya’s first president, Jomo, was quoted by Citizen TV as saying.
Kenya Kwanza administration is under pressure to increase annual revenue collection to Sh3 trillion amid rising debt and a demand for funding of multibillion-shilling projects.
The Sunday Nation understands that the ongoing investigations are not only companies of persons of the past administration which were not paying taxes but also some of the individuals in President Ruto’s circle who are out to bully KRA officials not to pay taxes.
Mr Mwaura said KRA has given the companies which have been evading taxes timelines to clear their arrears.
Mr Mwaura told the Sunday Nation that a wine and spirit company of a senior member of the former administration owes KRA Sh7.6 billion.
Another, he said, “is dumping oil in the country for export.”
DP stance
Deputy President Rigathi Gachagua this week insisted that firms must pay their dues.
“Let those who have not been paying tax not get nervous. We are open to discussion on how you can pay in bits. You can pay Sh1 billion every month until the balance is cleared. It’s very simple, everybody must pay tax,” said Mr Gachagua.
ODM Secretary-General Edwin Sifuna accused the Head of State of doublespeak on the matter of using State machinery to settle political scores.
“This was expected because we know exactly who he is. We knew he was lying when he said the era of sending KRA, Directorate of Criminal Investigations (DCI) and Ethics and Anti-Corruption Corruption (EACC) after political opponents is gone because he is a bitter and vindictive man who will never pass off an opportunity to harass those who don’t support him,” he said.
Jubilee Secretary-General Jeremiah Kioni yesterday accused the President of weaponising state agencies for political reasons.
“This is a tactic used by other despotic governments to take the businesses of other people. He is targeting Mount Kenya businesses,” said Mr Kioni.
ODM Chairman John Mbadi and Vihiga Senator Godfrey Osotsi said it was surprising that Kenya Kwanza politicians had taken over the role of KRA in demanding for companies and individuals to pay taxes.
“I would advise Ruto to focus on delivering on his promises to Kenyans. Taxes by the Kenyatta family alone will not run the economy. Every Kenyan has an obligation to pay taxes, but the way this matter has been made a subject of public rallies confirms our fear of state capture,” Mr Mbadi said.
Mr Osotsi termed the matter as a pure political witch-hunt meant to frustrate Mr Kenyatta. BY DAILY NATION