Kenyatta Orders Lifestyle Audit on High Net Worth Individuals Over Low Tax Remittances

President Uhuru Kenyatta.
31 October 2018

Nairobi — President Uhuru Kenyatta has ordered lifestyle audits to be conducted on high-net-worth individuals who live lavish lifestyles yet pay little taxes.

Speaking during the annual tax payers' day, President Kenyatta says such individuals need to reveal their source of wealth and pay taxes.

The Head of State further emphasized the need for KRA to make use of technology to reign in on more tax payers.

"High net worth individuals whose lifestyles are not reflective of the taxes they pay if any must be compelled to demonstrate their sources of wealth and to contribute their share of taxes accordingly," he said.

"Towards this end, the use of technology as an enabler is an immediate necessity and KRA must incorporate cutting edge technology in every aspect of its operations."

He further stated that the government has taken steps to widen the tax space to bring in more Kenyans.

"There should be no room for tax evaders to thrive in this Kenya. Criminal cartels like those smuggling imported taxable goods through our ports of entry ought to be easily detected and contained in the shortest possible time," he said.

"Traders who operate fake electronic tax registers, pocketing the VAT that they should collect should also be brought to heel."

The head of State said that the launch of the integrated tax system for KRA will aid in better tax collection.

During the event, the Head of State awarded distinguished taxpayers for the 2017/18 year but also cautioned those charged with collecting tax saying they should not use their positions to engage in extortion or promote tax evasion.

He urged KRA to work together with County governments to improve revenue collection of devolved entities.

KRA collected Sh329 billion in the first quarter ended September 2018 compared to Sh317.4 billion during the same period last year.

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