The Auditor General has revealed that the Kenya Revenue Authority (KRA) lost 9.6 million excise stamps in the financial year 2023/24. This shocking discovery has raised concerns about the presence of fake goods in the market and possible tax evasion by unscrupulous traders.
The missing stamps could have ended up in the hands of illegal businesses, allowing them to sell counterfeit alcohol, cigarettes, soft drinks, and cosmetics without paying the required taxes.
Excise stamps are supposed to be a mark of authenticity, proving that a product has met the legal requirements and that the necessary taxes have been paid. When these stamps fall into the wrong hands, rogue traders can use them to package and sell substandard goods while avoiding taxation.
This not only denies the government revenue but also exposes consumers to harmful products. Fake alcohol, for example, has been linked to severe health risks, including blindness and death.
Similarly, counterfeit cosmetics and soft drinks may contain dangerous chemicals that pose serious health threats.
The fact that such a large number of stamps went missing suggests weaknesses in KRA’s management systems. Many people are now questioning whether the tax authority is truly capable of securing these crucial documents.
If 9.6 million stamps can disappear without immediate action, how many more have been lost in previous years? Some fear that this could be part of a larger scheme where corrupt individuals within KRA work with illegal traders to divert excise stamps in exchange for bribes.
This would explain why such a serious matter is only coming to light now.With the possibility of fake products flooding the market, consumers are left in a vulnerable position.
Many will unknowingly buy counterfeit goods, thinking they are genuine because of the excise stamps. Meanwhile, honest businesses that follow the law will suffer losses as they struggle to compete with illegal traders who avoid taxation.
The government, on the other hand, loses billions in revenue that could have been used to improve public services.
The tax authority must explain how the stamps disappeared and what measures are being taken to recover them. Many Kenyans are now calling for an independent investigation into the matter, fearing that this could just be the tip of the iceberg. The government must act swiftly to address this crisis.
Strict measures should be put in place to prevent the loss of excise stamps in the future. KRA must also conduct thorough investigations to identify those responsible and take action against any officials found guilty of negligence or corruption.
If such incidents continue unchecked, they will not only hurt the economy but also put millions of lives at risk due to the circulation of dangerous fake goods.
Add Comment