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Determined to raise enough money to run his government, President William Ruto has now sought the intervention of the National Police Service whom he has directed to launch a countrywide crackdown on tax evaders and counterfeit goods.

The police have been directed to work closely with Kenya Revenue Authority (KRA) officials to conduct intelligence-led operations targeting illegal and contraband goods to deter tax evasion.

Sources within the National Police Service intimated to People Daily the President issued the order to the police following reports revenue collection may have plummeted in the last two months.

The acting Inspector General Noor Gabow on Monday ordered a countrywide crackdown and warned that unscrupulous businesses had devised several ways of evading taxation.

“This follows the detection of numerous tax evasion schemes around the country which deny the government due revenue to fund public services. The crackdown is to commence with immediate effect under the coordination of respective commanders at all levels,” he said.

Blank cheque

Gabow directed the police commanders to immediately contact their KRA counterparts if any revenue evasion case is detected.

“Regional and County commanders should take the responsibility over these operations in coordination with the KRA as necessary,” the IG directed.

The directive has, however, ignited concerns among traders and business people who view it as a blank cheque for rogue police officers to extort money from them.

Under the previous administration, such crackdowns was carried out by multi-agency team comprising of officers from the National Intelligence Service (NIS), Kenya Police Service, Criminal Investigations Unit, Kenya Bureau of Standards (Kebs), KRA, Anti-Counterfeit Authority and the Petroleum Institute of East Africa.

But in an apparent departure from the past, local police officers are allowed to launch a crackdown in their respective areas as long as long they liaise with KRA officials.

The directive comes a few weeks after President Ruto put some KRA) staff on notice over claims that they colluded with tax evaders to defraud the State.

Addressing this year’s KRA Taxpayers’ event, the President said he had tasked KRA to collect Sh3 trillion in revenue during the next financial year, about Sh1 trillion on top of the authority’s collections in the 2021/22 financial year, the first time it ever collected beyond Sh2 trillion.

“I expect KRA to raise at least Sh3 trillion by the end of the next financial year and to double the current collection in five years,” the President is reported to have said at the event.

Standing orders

Raising tax revenue is expected to give the government more legroom to engage in development investments while reducing reliance on foreign debt.

“Unfortunately, some unscrupulous taxpayers devise ways to cheat and evade paying taxes due hence affect projected revenue generation targets,” the police boss said.

According to the IG, while revenue collection is the responsibility of KRA, the National Police Service is obligated to act whenever such crimes, including counterfeit goods and organised crimes, are committed.

“We are therefore reminded of our general law enforcement mandate under the Penal Code, the National Police Service Act, The Prevention of Organised Crime Act and other subsisting laws including the Service Standing Orders,” the directive read.

Concerns have, however, been raised on the possibility of rogue police officers taking advantage of the directive to harass traders and extort money from them.