KRA Under Scrutiny Over Theft of 9.6 Million Excise Stamps

The Kenya Revenue Authority (KRA) is facing tough questions following the reported theft of 9,686,358 excise stamps, raising fears of increased tax evasion and the possible spread of counterfeit goods in the Kenyan market.

On Thursday, Nominated Senator Miraj Abdulrahman called on the Senate’s Standing Committee on Finance and Budget to investigate the matter thoroughly.

She urged the committee to probe whether a tax evasion syndicate had infiltrated KRA’s systems, potentially compromising the government’s efforts to collect revenue.

The senator is demanding that KRA provide clear answers to the public, especially in light of past incidents involving stolen government documents.

In September 2024, title deeds reportedly went missing from the Government Printer, yet authorities have not released any findings from investigations into that case.

Senator Miraj has now tasked the Finance Committee with questioning KRA’s leadership on how such a large number of excise stamps went missing. She further insists that the agency submit a report to Parliament detailing the safety of goods circulating in the market.

Additionally, the senator wants the Ali Roba-led committee to outline what steps KRA is taking to strengthen its systems and prevent future cases of stolen stamps, which could lead to a surge in counterfeit goods across Kenya.

Illicit Trade a Major Concern

Kenya has long struggled with illicit trade, which is estimated to account for nearly 40% of goods sold in the country.

Some of these products are smuggled imports that should be in transit but are instead diverted into the local market without paying taxes. Others enter the country through misdeclaration, where importers falsely label them as lower-value goods to evade high tax rates.

Counterfeit products made within Kenya could also be linked to the stolen excise stamps. The circulation of fake goods not only affects genuine businesses but also damages consumer trust and discourages investors from setting up in Kenya.

A Long-Standing Issue

The issue of missing excise stamps has raised concerns for years. In 2022, during the annual Taxpayers’ Month at the Kenyatta International Convention Centre (KICC), President William Ruto pointed out a major discrepancy in revenue collection.

“The problem is that the government is selling 2.9 billion stamps, while other people are selling an additional 7 billion stamps,” President Ruto alleged at the time.

In response to counterfeiting threats, KRA upgraded its excise stamps to a more advanced version with security features produced by Swiss firm SISCPA.

These stamps replaced older versions introduced in 2003, which had become easy to forge. However, despite the security upgrades, cases of tax evasion and illicit trade continue to persist, raising concerns about weaknesses in the enforcement of anti-counterfeit measures.

The theft of millions of excise stamps has once again put KRA under pressure to tighten its security protocols and reassure Kenyans that their tax system is not being manipulated for illegal gains.

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