Tax evasion facilitation cartel inside KRA
The stamps, which are stored in a secure vault at Times Tower, one of the most protected installations are central to tax compliance and enforcement
A major security breach has been uncovered at the Times Tower that houses Kenya Revenue Authority (KRA) headquarters in Nairobi, where millions of excise stamps belonging to the taxman were stolen in what investigators believe was a well-coordinated internal scheme.
The heist involved approximately 24 million excise stamps—critical tax markers used to authenticate goods such as alcohol, cigarettes and bottled beverages—raising serious concerns over revenue loss and the proliferation of counterfeit products in the market.
The stamps, which are stored in a secure vault at Times Tower, one of the most protected installations are central to tax compliance and enforcement.
Preliminary findings indicate that the theft was not a one-off incident but part of a broader, long-running scheme exploiting systemic weaknesses within KRA’s controls.
Investigations have pointed to lapses in oversight, reconciliation and record-keeping, some of which date back several years.
According to reports, insiders may have played a key role in facilitating the theft, with the syndicate taking advantage of gaps during the transition from manual systems to the automated Excise Goods Management System (EGMS).
KRA officials acknowledged the scale of the problem, noting that the missing stamps were initially recorded as losses but were never properly accounted for.
KRA is quoted as saying that the discrepancies were not the result of a single incident, but rather a gradual accumulation of control failures thus owning up to the internal manipulable systems orchestrated by those entrusted to safeguard it.
The tax agency has since moved to take disciplinary action against implicated staff, with several officers interdicted and at least one dismissed as investigations continue.
The authority also confirmed that part of the lost value—estimated at over Sh120 million in related cases—has been recovered.
The scandal has triggered alarm among policymakers and industry players, given the potential impact on public revenue and consumer safety. Illicit excise stamps can enable tax evasion and allow counterfeit or substandard goods to enter the market undetected.
“This incident raises critical concerns about consumer safety, public health risks, tax evasion and market integrity,” one lawmaker warned, calling for urgent investigations into the matter.
