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KRA goes after big banks accused of falsifying bad loans
KRA commissioner-general John Njiraini and Central Bank governor Patrick Njoroge. The KRA reckons that banks have exaggerated their bad debts to the tune of Sh120 billion with the sole aim of lowering their tax burden. PHOTOS | FILE
The Kenya Revenue Authority (KRA) has opened investigations into the activities of eight top commercial banks accused of inflating their stock of bad loans to reduce their tax obligations.
The taxman insists that a large stock of the bad loans is the product of irresponsible and insider lending that does not qualify as losses for tax purposes — meaning they may be reversed to significantly increase the banks’ tax obligations, eating deep into their profits.
