Authorities are scrutinizing a potential insider involvement at the Kenya Revenue Authority (KRA) following a six-day system failure in November, which led to an unusual dip in tax collections.
The failure of the Integrated Customs Management System (iCMS) in early November disrupted the clearance of goods at key entry points, including the Port of Mombasa, Jomo Kenyatta International Airport, and inland container depots. This left traders stranded with both incoming and outgoing cargo, including vital exports like tea, as they were unable to lodge necessary clearance documents.
According to Business Daily, Treasury Cabinet Secretary John Mbadi acknowledged that the system breakdown had significantly impacted revenue generation at a time when the economy was beginning to recover from disruptions caused by youth-led anti-government protests. Investigations are ongoing amid allegations that KRA staff may have deliberately sabotaged the tax collection system.
“The investigation is still underway, and there are suspicions of an inside job,” Mr. Mbadi said during an interview with one of the local media stations. “The outage caused immense strain as we were unable to collect taxes for six days, which led to missed revenue targets,” he added.
Data from the Treasury reveals that KRA collected KSh160.32 billion in taxes for November, marking a rare 1.4% drop (KSh2.28 billion) compared to the same month in the previous year. Apart from the November shortfall, a similar revenue decline was observed in August, attributed to economic disruptions from the protests.
Concerns over revenue collection inefficiencies at KRA have been raised before. President William Ruto has previously accused the agency’s staff of engaging in corruption, colluding with tax evaders, and accepting bribes. The head of state has also criticized attempts to resist digital transformation efforts aimed at sealing revenue leaks.
With investigations still ongoing, the outcome is expected to shed light on whether the outage was purely a technical failure or the result of deliberate internal interference. The findings will likely influence future strategies for safeguarding Kenya’s tax systems against potential threats.
