A move by the Kenya Revenue Authority (KRA) to demand Sh1.74 million as fresh sales tax from a local tailor has shocked many people in Kapenguria town, West Pokot County.
This comes at a time when KRA officials at the Kitale branch are facing accusations of exploitation, demanding bribes from businessmen, threats and harassment.
Joseph Omondi Oyomo, who owns a sewing shop called 'Elegance Textiles' and a small and fledgling tailoring centre where he trains young people in sewing, is the latest victim to be forced to pay the huge amount as tax arrears for the last three years.
Photo credit: Oscar Kakai | Nation Media Group
Omondi is not alone as other businessmen in the area have raised concerns about being frustrated and exploited by officials who are forcing him to pay inflated tax arrears because he refused to pay bribes.
This year, another wholesale trader in Makutano town was forced to close his premises after being forced to pay KES 7 million in tax arrears.
A businesswoman, who spoke on condition of anonymity for fear of victimisation, said the KRA was now demanding Sh500,000 from her.
Omondi sews women's dresses, suits and school uniforms and says his business is too small to pay the KRA the full amount.
Mr Oyomo displays the tax papers.
Photo credit: Oscar Kakai | Nation Media Group
Omondi claims that the KRA officers demanded a bribe from him, which he refused to pay.
"The KRA is being used as a weapon to frustrate small businessmen. We are struggling to make ends meet," he said.
Omondi, who started his business in 2021, said he was wrongly removed from the turnover tax system by the authority itself.
"I went to the KRA office in Kitale to find out where the problem was, but they did not help me. I went to the Eldoret office and it was solved, so I started paying. It took about two years and I decided to go to the Eldoret office. I started paying VAT in May 2023," he said.
However, he says the Kitale office recently demanded his business records for the past three years.
"They wanted my M-Pesa transactions and bank statements for the last three years. I went to the Kitale office and explained. They wanted me to pay Sh166,000, which I agreed to pay in six months, but they wanted me to bribe them. I refused. They made adjustments and asked for Sh292,000, but I didn't cooperate. Now they want Sh1.74 million," he claims.
"Even if I go to the bank now to get a loan of Sh1.7 million or even a million, I won't get it. My business is down because of the hard economic times. Even if I give my collateral, they won't give it to me. I have no money from anyone. Where do I start?" he pondered.
Another businessman in Kapenguria town, Ashiono Wendo, called on the KRA to sensitise people about its new procedures.
"We need public participation. Some people were working but were sacked, yet they are forced to pay taxes every month. Some have little stock, but they are forced to pay huge amounts of money. They can't pay more than what they sell.
"This month they want Sh100,000, then Sh150,000 and later a million. They should be realistic. We don't want threats over the phone. They should not use people's ignorance to extort money from them," he said.
Sammy Abuyanza, a resident of Kapenguria, said the KRA should be friendly to the people.
"At the moment, if you see KRA people, you can run away out of fear. We have to pay taxes, but we should be educated on how to declare. Let the boda boda and mama mboga understand first," he said.
Brian Wekesa, an accounting officer at the Kitale KRA office, says Omondi failed to pay the tax arrears from 2018, which is why the amount has accumulated to Sh1.74 million.
Wekesa adds that the calculation was done according to the records that Omondi submitted to the KRA.
"He could have appealed through the proper channel of writing an email to us," he said.
