EACC Nabs KRA Officers Over Alleged Ksh900,000 Bribe in Tax Assessment Scandal

EACC Nabs KRA Officers Over Alleged Ksh900,000 Bribe in Tax Assessment Scandal

NAIROBI, Kenya – Two employees of the Kenya Revenue Authority (KRA) have been arrested by the Ethics and Anti-Corruption Commission (EACC) over allegations of soliciting and receiving a bribe linked to a multi-million-shilling tax assessment case.

The arrests, announced by EACC on Sunday, June 22, followed a sting operation conducted at KRA’s Upper Hill offices in Nairobi after a taxpayer lodged a formal complaint accusing the officials of demanding money to influence a tax-related decision.

According to the anti-graft agency, the two officers allegedly demanded Ksh3 million from a taxpayer in exchange for helping resolve a Capital Gains Tax (CGT) assessment valued at Ksh4.5 million.

In a statement, EACC confirmed that the suspects were apprehended while allegedly receiving part of the agreed amount.

“The Ethics and Anti-Corruption Commission (EACC) has arrested two employees of the Kenya Revenue Authority (KRA) over allegations of soliciting and receiving a bribe in connection with a tax matter,” the Commission stated.

The agency further revealed that investigations established the officials had allegedly used their positions to demand the payment from the taxpayer.

“The suspects, both based at KRA’s Upper Hill offices, were arrested following a complaint that they had demanded Ksh3 million from a taxpayer in exchange for influencing the resolution of a Capital Gains Tax assessment amounting to Ksh4.5 million,” EACC added.

Sting Operation Leads to Arrest

Following the complaint, EACC detectives launched investigations and organized a carefully planned operation to verify the allegations.

The two suspects were reportedly caught red-handed while receiving Ksh900,000, which investigators say was part of the negotiated bribe amount.

Photographs released after the operation showed investigators displaying recovered cash and other materials seized during the arrest. Authorities also disclosed that counterfeit Ksh1,000 notes were among the items recovered during the operation, raising additional questions that investigators are expected to examine.

The suspects were escorted to the Integrity Centre, EACC’s headquarters in Nairobi, where they were processed as investigations continued.

The commission indicated that the officers are expected to face charges under the Anti-Bribery Act, 2016, which criminalizes the solicitation, acceptance, and offering of bribes in both public and private institutions.

Understanding Capital Gains Tax

Capital Gains Tax is imposed on profits earned from the transfer or sale of assets such as land, buildings, shares, and business investments. The tax is calculated based on the difference between the acquisition cost and the selling price of the asset.

As Kenya continues to digitize and strengthen tax administration, tax-related disputes have increasingly become a focus area for oversight agencies seeking to curb corruption and abuse of office.

EACC Intensifies War Against Corruption

The latest arrests come amid a broader anti-corruption campaign by EACC targeting bribery, abuse of office, procurement fraud, and unexplained wealth among public officials.

According to recent data released by the commission, EACC has significantly expanded its operations this year, recovering billions of shillings in public assets and preventing major losses of taxpayer funds.

The commission reported recovering assets valued at Ksh3.4 billion and averting the loss of an additional Ksh16.5 billion through intelligence-led interventions and investigations.

EACC also disclosed that it traced unexplained wealth worth Ksh22.9 billion and filed 79 new civil recovery cases aimed at reclaiming assets suspected to have been acquired through corrupt means.

In addition, the anti-graft agency forwarded 97 investigation files to the Office of the Director of Public Prosecutions (ODPP), recommending criminal charges against various public officers and private individuals.

Beyond financial crimes, EACC has raised concern over the increasing use of fake academic certificates in public service and warned about the growing prevalence of sextortion, a form of corruption that disproportionately affects women seeking employment and public services.

As investigations into the KRA bribery case continue, the arrests are expected to renew scrutiny on integrity within public institutions and reinforce ongoing efforts to combat corruption in Kenya’s tax administration system.

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EACC Nabs KRA Officers Over Alleged Ksh900,000 Bribe in Tax Assessment Scandal