The Kenya Revenue Authority will get help in fighting international tax evaders.
The Kenya Revenue Authority has recovered Sh330 million from tax evading county suppliers. PHOTO/ File- Business Today.

The government through the National Treasury Acting Cabinet Secretary Ukur Yatani has signed a crucial continental declaration treaty that will see illicit financial flows cases dealt with at the international level.

This is a measure by the government to step up efforts to curb illicit financial flows (IFFs) out of the country. The CS has provided the much needed shot in the arm for the Kenya Revenue Authority (KRA) efforts to tackle illicit financial flows through the Yaoundé Declaration.

While welcoming the commitment by the Government, KRA Commissioner-General Githii Mburu said the instrument focuses on improving international tax cooperation through enhanced information sharing among the African Union (AU) member states to curb illicit financial flows.

“KRA is encouraged by the Government’s swift moves to prioritize the signing of international treaties that will accelerate efforts to curb international tax evasion,” Githii said.

Ukur Yatani wrote a communique to the Chairperson of the Global Forum on Transparency and Exchange of Information for Tax Purposes Ms. Maria-Jose Gard to confirm Kenya’s commitment to the Yaoundé Declaration.

“Recognizing that an initiative by the African Union on tax cooperation and illicit financial flows to enhance domestic resource mobilization, with the support of the Global Forum and its African members, in collaboration with the United Nations Economic Commission for Africa, Regional Economic Communities and the African Development Bank would be a decisive step forward, I hereby join the Yaoundé Declaration and add Kenya’s weight to its commitments,” the CS’s communique read in part.


“Kenya is encouraged by the Yaoundé Declaration and its call for action to tackle illicit financial flows in Africa through improved international tax cooperation. This is a clear message from African Ministers on the fight against tax evasion, which we need to enunciate at the right level across the continent,” he added.

According to the Organisation for Economic Co-operation and Development (OECD), the global landscape for fighting tax evasion and avoidance has changed substantially over the last few years.

International cooperation and exchange of information (EOI) have emerged as vital tools in tackling illicit financial flows (IFFs). Countries that are destinations for these flows, including financial centres in Europe, Asia, America, the Caribbean, and Pacific, now participate in the global effort to improve tax transparency and EOI for tax purposes thus helping developing countries to prevent the outflows and identify the people involved.

A recent report from the African Union and United Nations Economic Commission for Africa’s High-Level Panel on Illicit Financial Flows from Africa has focused attention on the scale of IFFs from Africa.

It estimated that Africa loses $50 to $60 billion each year through IFFs. This includes money from tax evasion and other criminal activities (corruption, money laundering, etc.) which undermine Africa’s development and governance agenda. The report also identifies ways to tackle IFFs, including through EOI and improved international tax cooperation.

About the Author

Kevin Namunwa is a senior reporter for Business Today. Email at [email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *