The Kenya Revenue Authority (KRA) has warned businesses against engaging in tax evasion, smuggling, use of counterfeit stamps and issuing fictitious invoices, saying such practices undermine firms that comply with their tax obligations.
KRA Commissioner General Adan Mohamed said the authority was committed to protecting compliant businesses from competitors who gain an unfair advantage by avoiding taxes.
"For the compliant business, leakage is not a fiscal problem. It is an existential one. A manufacturer who pays VAT, corporate tax and customs honestly should never be priced out by a competitor thriving on smuggling, counterfeit stamps or fictitious invoices. Protecting revenue integrity is protecting fair competition," Mohamed stated.
Speaking at the Institute of Certified Public Accountants of Kenya (ICPAK) 43rd Annual Seminar on Friday, Mohamed said KRA was working to strengthen accountability while making tax services more accessible to businesses and individual taxpayers.
This comes even as KRA has introduced stricter documentation requirements for importers under Section 43 of the Finance Act 2026, requiring them to retain official export declarations or equivalent documents issued by competent authorities in exporting countries.
Mohamed explained that the requirement followed a comparison between China's reported exports to Kenya and the value of goods captured in KRA's Customs records.
He said KRA reached out to China's State Taxation Administration to compare trade records between the two…
