The Kenya Revenue Authority (KRA) is grappling with a Sh9 billion deficit, with its liabilities exceeding assets, according to a new audit report. Auditor General Nancy Gathungu revealed that KRA’s current liabilities stand at Sh13.4 billion, against assets worth Sh3.9 billion, raising concerns about its ability to meet financial obligations.
The report highlights a significant rise in liabilities by Sh2.5 billion during the review period, while assets grew by only Sh613 million. A key contributor is a Sh3.6 billion shortfall linked to underpriced excise stamps for non-alcoholic beverages. The audit also flagged delays in procuring a new excise stamp system provider, with uncertainties surrounding the handover process from the current supplier, Sicpa.
Additionally, KRA failed to disclose board expenses, including remuneration, as required by governance regulations. The audit warns that the authority’s increasing debt burden and financial opacity could impact its long-term stability.
