2.2 Revenue Transparency [Page 14]  

Tax revenue is the most important, reliable and sustainable means of resourcing initiatives that contribute to the realisation of human rights such as health and education. Businesses are significant contributors to tax revenue. The Kenya Revenue Authority Act, provides that, domestic revenue is derived from several sources including taxes, duties, fees, levies, charges, penalties, fines or other monies and are collected from individuals, private and public businesses by different entities at national and county level.

Tax justice and the regulation of financial behaviour of companies can no longer be treated in isolation from the corporate responsibility to respect human rights, outlined in the UNGPs and business commitments to support the SDGs. […]

Like many other jurisdictions, Kenya faces challenges concerning revenue mobilisation and the link to business activities, among them IFFs, tax avoidance and tax evasion by businesses. These practices result in reduction of the resources available for investment in essential social services, fostering inequalities, undermining economic and social institutions, and even discouraging transparency in matters of public finances.

The 2017 amendments to the Proceeds of Crime and Anti-Money Laundering Act, 2009 establish the Financial Reporting Centre (FRC), an independent financial intelligence agency charged with combating money laundering and identifying proceeds of crime including tax evasion.

Despite the above efforts, the NAP consultations identified several challenges that affect revenue transparency:

1. Corruption in the process of revenue collection and the management of public revenue. Stakeholders identified corruption in the business licensing process and the process of tax collection and public procurement, which they attributed to both public and private sector actors;

3. Lack of transparency in administration and management of revenues from the exploitation of natural resources including from mining and oil and gas activities; and

4. The absence of legal beneficial ownership disclosure aids the veil of secrecy in determining who owns and controls business entities, inhibiting law enforcement ability to ‘follow the money’.


3.1. Pillar 1: The State Duty to Protect

Policy Actions [page 23]

The Government will:

13) review current trade and investment promotion agreements and bring them into compliance with the Constitution and international human rights standards and to also ensure that they are not used to facilitate illicit financial flows and tax evasion by businesses.




Strategic Objective Policy Actions Responsible Actor(s)
Strategic Objective 1:

Enhance existing policy, legal, regulatory and administrative framework for ensuring respect of human rights by business through legal review and development of specific guidance for business


Review current trade and investment promotion agreements and bring them in consonance with the Constitution and the state’s international human rights obligations.