A multi-billion tax evasion scandal involving Tecno Transsion Electronics (Pvt) Ltd has exposed cracks within the Kenya Revenue Authority’s (KRA) oversight, igniting questions about accountability in Kenya’s tax system.
According to blogger Cyprian Nyakundi, Sources report that allegations of financial misconduct at the mobile phone giant surfaced as early as April 2024, with claims that Tecno had failed to remit employee tax deductions.
The controversy began when whistleblowers within Tecno’s Nairobi office alerted authorities to discrepancies in PAYE remittances and questionable financial practices.
President William Ruto
delivers speech during a past KRA event
In May 2024, KRA agents raided Tecno’s offices at Cardinal Otunga Plaza, uncovering documents and cash evidence that reportedly pointed to unreported salary payments, hidden supplier transactions, and large amounts of local and foreign currency allegedly meant to bypass formal banking systems.
For Tecno employees, the KRA raid initially seemed a step toward accountability. The scandal shone a light on alleged workplace issues, with reports emerging of undocumented foreign workers holding key roles without proper immigration permits.
Kenyan employees cited discrimination and exploitative practices, with some reporting harassment by foreign workers who seemed immune to internal regulations.
KRA boss Anthony Mwaura during a past event. Photo: The Star Source: Facebook
Yet despite what whistleblowers and insiders describe as substantial evidence, the investigation appears to have stagnated.
Reports suggest that KRA’s initial commitment waned, raising concerns that certain officials may have been influenced to overlook the evidence.
For many, KRA’s silence is puzzling, given the significant financial impact of unpaid taxes on Kenya’s economy.
Under the leadership of Commissioner General Humphrey Wattanga, KRA has faced mounting criticism for aggressively pursuing tax from small earners while large corporations, such as Tecno, allegedly slip through the cracks.
KRA headquarters in Nairobi. Photo: Citizen TV Kenya Source: Facebook
The public outcry reflects a growing frustration with the perceived preferential treatment of foreign companies, particularly those with significant market power in Kenya, like Tecno’s Infinix and ITEL brands.
The potential financial loss is staggering, with some estimates suggesting Tecno may owe Kenya as much as Ksh 400 billion.
As citizens struggle under rising tax pressures, there is a rising demand for transparency and justice, with many calling on KRA to act decisively and restore public trust in the tax system.
