Uasin Gishu Governor Jackson Mandago has told off the Kenya Revenue Authority over its persistent hunt on tax evaders. Mandago says this is frustrating local companies. The governor has told KRA to instead look for alternative ways to handle tax evasion instead of the constant persecution of suspects.
“The government and KRA should initiate amicable ways on how local companies with outstanding taxes running into billions of shillings should meet their tax obligation instead of shutting businesses,” Mandago said.
He added: ”If we frustrate local companies over failure to pay outstanding taxes, we shall be opening opportunities for foreign investors to come and set base in the country at the expense of our investors to open shops in the country.”
He urged KRA to come up with a more diplomatic approach when dealing with non-compliant local companies and individuals to save local investors from shutting down businesses resulting in loss of jobs.
“Closing down non-compliant local companies is counterproductive since it will lead to thousands of job losses for Kenyans at a time the country is faced with employment crisis,” added Mandago.
He also challenged local companies and individuals to clear all the outstanding taxes to enable the national and county governments to offer services to Kenyans.“These companies and individuals should pay tax if they expect the county and national governments to provide better services to the people,” said Mandago.
Among top businesspersons who have fallen in the KRA trap are Tabitha Karanja of Keroche Breweries, Sportpesa owners and billionaire Humphrey Kariuki.