Taxpayers are staring at about Sh1.7 trillion losses in contentious and uncollected taxes, exposing the Kenya Revenue Authority (KRA) to growing revenue shortages even as it struggles with collections.
The amount includes Sh542 billion reported by the taxman as “erroneous, uncollectable and doubtful debts” and Sh1.16 trillion tax arrears that have been outstanding for more than three years, a report by the Auditor-General shows.
The report, capturing unreconciled arrears of revenue balance by the end of June 2023, showed that net tax arrears totalled Sh999.6 billion.
