The Chinese company behind popular smartphone brands TECNO, Infinix, and ITEL, is embroiled in allegations of evading taxes amounting to Sh400 billion.
This staggering figure highlights the scale of the alleged misconduct, which involves collusion with corrupt officials from the Kenya Revenue Authority (KRA).
The allegations suggest that Transsion has been engaging in a sophisticated scheme to avoid paying taxes.
According to whistleblowers and investigative reports, the company has been falsifying records, underreporting earnings, and bypassing standard tax procedures.
These activities have reportedly been facilitated by KRA officials who, in exchange for bribes, have allowed these irregularities to persist unchecked.
Transsion's dominance in Kenya's mobile phone market makes these allegations particularly concerning. Despite its significant presence, the company has notably avoided being listed among Kenya’s top taxpayers.
Blogger Cyprian Nyakundi, a vocal whistleblower, has exposed details of how KRA officials have been involved in facilitating this tax evasion. He claims, “Insiders tell me we are talking about an excess of Ksh. 400 billion evaded. KRA staff collect what we call a private tax to enable the crimes.”
This scandal underscores the urgent need for reforms within Kenya’s tax authority. The involvement of KRA officials in such schemes highlights deep-rooted corruption within the system. Without transparency, accountability, and strict enforcement, Kenya’s tax system remains vulnerable to manipulation by corrupt officials and corporations, resulting in massive losses of public funds.
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