NAIROBI (Xinhua) --
Kenya plans to enhance surveillance of illicit
financial flows to curb revenues losses, a senior official said
National Treasury Cabinet Secretary, told journalists in Nairobi
that the government loses a significant amount of tax revenues
through transfer pricing by multinational corporations.
“We are developing
tools that will enable us to detect illicit financial flows out
of Kenya in order to reduce revenues looses,” Rotich said during
the launch of the Africa Growth Initiative (AGI) Flagship
Report, Foresight Africa: Top Priorities for 2018.
multinational corporations tend to over-invoice imports and
under-invoice exports to reduce their tax liabilities.
He noted that the
government is identifying mechanisms to boost revenues in order
to reduce budget deficit.
According to the
National Treasury, Kenya’s tax revenue to GDP stands at
approximately 19.2 percent.
“We want to push the
figure to 25 percent in the next four years in order to enhance
domestic resource mobilization,” he added.
Rotich said that
Kenya is seeking to expand government resources so as to fund a
five-year economic agenda that will transform the country’s