KRA hits banks with Sh4.6 billion tax bill after bad loans audit

Kenya Revenue Authority Commissioner General John Njiraini. FILE PHOTO | DIANA NGILA | NMG

The taxman has hit eight commercial banks said to have evaded tax by over-providing for bad loans with a multi-billion shilling demand, setting shareholders up for possible erosion of earnings from their investment.

The Kenya Revenue Authority (KRA) announced last year that the banks had denied it some Sh4.6 billion in tax revenue by reporting excess loan loss provisions to reduce their tax burdens.

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