The Tecno tax evasion scandal that surfaced in April 2024 has become one of the most serious examples of corporate misconduct in Kenya.
Reports of financial mismanagement, especially concerning the non-remittance of Pay As You Earn (PAYE) deductions, began to surface when concerned employees blew the whistle on the company’s operations.
These internal concerns eventually caught the attention of the Kenya Revenue Authority (KRA), leading to a high-profile investigation.
The raid uncovered a stockpile of documents revealing unreported salary payments, undisclosed supplier transactions, and a disturbing pattern of financial mismanagement.
KRA agents also seized large amounts of cash, both in local and foreign currencies, suggesting attempts to avoid traceable transactions.
The discovery of these hidden financial activities sparked hope among whistleblowers and Kenyans alike that justice would finally be served.
For the first time, it seemed like the full extent of Tecno’s financial misdeeds was in the hands of the authorities.
Whistleblowers who had gone to great lengths to share vital information about the company with journalists, bloggers, and watchdog organizations were cautiously optimistic.
They hoped the raid marked the beginning of accountability for Tecno, which had long been operating with impunity.
Among the most serious issues uncovered were illegal practices involving foreign workers.
Numerous reports indicated that Tecno employed undocumented foreign workers, primarily from Asia, without the proper immigration processes or work permits.
These workers were reportedly granted unchecked power over Kenyan staff, with many experiencing verbal abuse, discrimination, and denial of promotions.
Criticism of management was swiftly met with retaliation, creating an atmosphere of fear and exploitation.
Despite the early promise of justice, however, the investigation soon stalled.
The optimism that followed the raid began to fade as time passed with no significant action from KRA.
The recovered documents and cash seemed to have little impact, and the investigation appeared to lose momentum.
The whistleblowers, once full of hope, began to fear that their efforts had been in vain.
It became clear that the investigation was not progressing as expected, and many began to suspect that KRA agents involved in the raid had been compromised.
The failure of the KRA to act on the evidence recovered from Tecno’s offices raises serious questions about the integrity of the tax authority.
Despite the overwhelming evidence of tax evasion and financial misconduct, Tecno continued to operate without any visible consequences.
The company was not listed among Kenya’s top tax contributors, and employees still reported that PAYE deductions were being taken from their salaries without being remitted to the government.
This scandal exposes a deeper problem with corporate tax evasion in Kenya.
While KRA has demonstrated a relentless drive to target smaller earners, it seems less willing to take on multinational corporations that generate billions in revenue.
The case of Tecno is just one example of how foreign companies can evade taxes with little fear of repercussions.
Ordinary Kenyan citizens are burdened with high taxes, and their contributions are used to support the very system that allows these corporations to avoid paying their fair share.
The scale of Tecno’s operations in Kenya is enormous. Brands like Tecno, Infinix, and ITEL have a massive presence in the local market, with kiosks, stores, and distributors spread across the country.
These companies are highly profitable, but the estimated Ksh 400 billion in unpaid taxes highlights the extent of their financial misconduct.
This amount, which is nearly half a trillion Kenyan shillings, has been lost due to the lack of enforcement by KRA and the apparent inability or unwillingness of the government to hold multinational corporations accountable.
Kenyans are growing increasingly frustrated with the lack of action from KRA and government authorities.
While ordinary citizens are forced to comply with tax laws, the rich and powerful continue to find ways to evade their responsibilities.
The public is beginning to feel betrayed by the very institutions meant to protect their interests.
The tax evasion scandal surrounding Tecno is just one example of how corporate greed has been allowed to flourish unchecked in Kenya.
The failure to address this issue not only harms the country’s economy but also fuels public anger. Kenyans are increasingly disillusioned with the government’s ability to hold foreign corporations accountable.
The frustration that led to protests in June 2024 is still fresh in the minds of many. If this issue is not addressed, it could lead to even greater unrest, as Kenyans demand justice for the billions of shillings lost to tax evasion.
The time for decisive action is now.
Commissioner General Humphrey Wattanga and KRA must step forward and take immediate action to hold companies like Tecno accountable for their role in this massive tax evasion scheme.
Failure to do so will only worsen the public’s anger and distrust in the government.
If the authorities continue to turn a blind eye to corporate tax evasion, Kenyans will have no choice but to take matters into their own hands. The question is no longer if, but when this will happen.
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