@BusinessDaily

EDITORIAL: Hidden wealth worrying

2 months ago, 11 Oct 18:10

By: Editorial

Kenya, like many other Third World countries, grapples with illicit cash outflows in form of tax evasion by multinationals and local wealthy individuals stashing billions of shillings abroad.

The government has however put in place efforts to trace and recover such illicit cash hidden in popular havens including Bermuda, Switzerland, Cayman Islands, Channel Islands and the Isle of Man.

Treasury secretary Henry Rotich in the Finance Act 2016 provided for the tax pardon as an incentive to woo those with undeclared assets overseas to return them home as well as extending the June deadline to do so to next year. But going by the latest US-based think tank National Bureau of Economic Research’s report, super-rich Kenyans have hoarded Sh15 trillion in the offshore tax havens. This shows the incentives do not seem to have borne fruit.

The government needs to step up the push to repatriate the money. This can be achieved through homegrown incentives to encourage the individuals to return the money voluntarily or through legal sanctions.

Failure to act proactively and decisively on ill-gotten wealth will embolden corruption and money laundering cartels to continue enriching themselves at the expense of the taxpayers.

The latter should involve the government signing mutual legal assistance pacts with the havens of illicit cash like the Framework for the Return of Assets from Corruption and Crime in Kenya agreement President Uhuru and his Swiss counterpart Alain Berse signed in Nairobi last July.

Such deals would help to ensure an effective crackdown on wealth acquired through corruption, tax evasion and theft of public funds.


Read More


Category: business corporate news opinion markets lifestyle economy

Suggested

6 hours ago, 00:06
@StandardMedia - By: Dominic Omondi
Taxpayers get short end of stick in Treasury’s borrowing binge

With most of the cash going into debt repayment and some of it lost to graft, this has cut off financing to essential areas of the economy. ...

Category: business news
11 hours ago, 19:12
@BusinessDaily - By: Brian Ngugi
Mergers to help banks weather interest rate caps

Kenyan commercial banks are coming under pressure to merge and create entities large enough to survive financial crisis in the wake of stricter regulatory and competitive landscape. ...

Category: business markets news opinion
6 hours ago, 00:06
@StandardMedia - By: Standard Reporter
Leading youth entrepreneurs of the year unveiled

The awards are designed to identify upcoming and industrious entrepreneurs aged below 35 years with great business acumen ...

Category: business news
6 hours ago, 00:06
@StandardMedia - By: Frankline Sunday
Fact Checker: Uhuru’s claim old hands are clean from graft allegations not true

Recently nominated Moody Awori was among the officials recommended for prosecution for their role in the Anglo Leasing scandal ...

Category: business news
6 hours ago, 00:06
@StandardMedia - By: Dominic Omondi
Disproportionate: Sh6b wasted on fertiliser as State plan fails to raise yields

New data shows cereals production for the nine years have not improved despite the billions poured into State’s subsidy programme. ...

Category: business news
7 hours ago, 23:29
@TheStar - By: Elizabeth Kivuva ...
Ethiopian Airlines frustrating open skies deal - Mikosz

Kenya Airways has accused Ethiopian Airlines of protectionism and government backing to become largest transfer hub for long-haul travel to Africa.KQ chief executive Sebastian Mikosz said that the str ...

Category: topnews news business

@BusinessDaily

EDITORIAL: Hidden wealth worrying

2 months ago, 11 Oct 18:10

By: Editorial

Kenya, like many other Third World countries, grapples with illicit cash outflows in form of tax evasion by multinationals and local wealthy individuals stashing billions of shillings abroad.

The government has however put in place efforts to trace and recover such illicit cash hidden in popular havens including Bermuda, Switzerland, Cayman Islands, Channel Islands and the Isle of Man.

Treasury secretary Henry Rotich in the Finance Act 2016 provided for the tax pardon as an incentive to woo those with undeclared assets overseas to return them home as well as extending the June deadline to do so to next year. But going by the latest US-based think tank National Bureau of Economic Research’s report, super-rich Kenyans have hoarded Sh15 trillion in the offshore tax havens. This shows the incentives do not seem to have borne fruit.

The government needs to step up the push to repatriate the money. This can be achieved through homegrown incentives to encourage the individuals to return the money voluntarily or through legal sanctions.

Failure to act proactively and decisively on ill-gotten wealth will embolden corruption and money laundering cartels to continue enriching themselves at the expense of the taxpayers.

The latter should involve the government signing mutual legal assistance pacts with the havens of illicit cash like the Framework for the Return of Assets from Corruption and Crime in Kenya agreement President Uhuru and his Swiss counterpart Alain Berse signed in Nairobi last July.

Such deals would help to ensure an effective crackdown on wealth acquired through corruption, tax evasion and theft of public funds.


Read More

Category: business corporate news opinion markets lifestyle economy

Suggested

6 hours ago, 00:06
@StandardMedia - By: Dominic Omondi
Taxpayers get short end of stick in Treasury’s borrowing binge

With most of the cash going into debt repayment and some of it lost to graft, this has cut off financing to essential areas of the economy. ...

Category: business news
11 hours ago, 19:12
@BusinessDaily - By: Brian Ngugi
Mergers to help banks weather interest rate caps

Kenyan commercial banks are coming under pressure to merge and create entities large enough to survive financial crisis in the wake of stricter regulatory and competitive landscape. ...

Category: business markets news opinion
6 hours ago, 00:06
@StandardMedia - By: Standard Reporter
Leading youth entrepreneurs of the year unveiled

The awards are designed to identify upcoming and industrious entrepreneurs aged below 35 years with great business acumen ...

Category: business news
6 hours ago, 00:06
@StandardMedia - By: Frankline Sunday
Fact Checker: Uhuru’s claim old hands are clean from graft allegations not true

Recently nominated Moody Awori was among the officials recommended for prosecution for their role in the Anglo Leasing scandal ...

Category: business news
6 hours ago, 00:06
@StandardMedia - By: Dominic Omondi
Disproportionate: Sh6b wasted on fertiliser as State plan fails to raise yields

New data shows cereals production for the nine years have not improved despite the billions poured into State’s subsidy programme. ...

Category: business news
7 hours ago, 23:29
@TheStar - By: Elizabeth Kivuva ...
Ethiopian Airlines frustrating open skies deal - Mikosz

Kenya Airways has accused Ethiopian Airlines of protectionism and government backing to become largest transfer hub for long-haul travel to Africa.KQ chief executive Sebastian Mikosz said that the str ...

Category: topnews news business
Our App