Revealed: Half of firms fail to pay corporate tax

The Kenya Revenue Authority's (KRA) Commissioner for Domestic Taxes Rispah Simiyu.

Photo credit: File | Nation Media Group

Nearly half of active companies that filed annual returns in the year to June did not pay taxes on corporate earnings, pointing to deepening losses and elevated prevalence of tax avoidance schemes.

Statistics obtained from the Kenya Revenue Authority (KRA) show that 171,585 out 341,793 firms which filed tax returns for the year ended June paid up their fair share to the taxman, reflecting a compliance rate of 50.2 percent.

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Note: The results are not exact but very close to the actual.