KRA owes suppliers Sh9.5bn following funding cut
Clients seeking services at KRA headquarters, Times Tower, Nairobi on February 23, 2024.
What you need to know:
- The bulk of it is owed to Swiss security printer Sicpa SA.
- KRA awarded Sicpa SA a contract for the supply of stamps.
The Kenya Revenue Authority (KRA) has accumulated pending bills worth Sh9.45 billion, with the bulk of it owed to Swiss security printer Sicpa SA for the supply of excise duty stamps.
KRA officials asked Parliament to allocate Sh4.47 billion towards clearance of the Excisable Goods Management System (EGMS) debt.
The taxman awarded Sicpa SA a contract for the supply of the stamps for a range of consumer products, including soda, bottled water, fresh juices, beer, spirits, cosmetics and cigarettes.
Commissioner-General Humphrey Wattanga told the National Assembly’s Finance and National Planning committee KRA owes medical service providers Sh1.22 billion, ICT system licenses and maintenance providers Sh792.5 million and scanner leasing and maintenance providers Sh796.14 million.
He further revealed that the taxman owes insurance providers Sh173.9 million, landlords (Sh522 million), car leasing firms (Sh183.2 million), utilities and general suppliers (Sh424.1 million), and electronic seals maintenance Sh867.7 million.
Revenue collected
“The pending bills are attributable to delayed disbursements and inadequate funding,” Mr Wattanga told MPs.
“This has been further aggravated by the reduction in the additional funding allocation by Sh3.5 billion from the earlier amount communicated of Sh10.7 billion.”
Mr Wattanga asked the committee to peg funding for KRA at 2 per cent of the total revenue collected.
“The Authority has severally submitted proposals on KRA funding for consideration in the Finance Bill to fix KRA funding in law at a minimum rate of 2 per cent of revenue targets,” he said.
“The proposal has however not been approved despite the justification presented,” the KRA boss added.
