Kenya: Nation Loses Sh156 Billion in Taxation Tricks by Flower Firms
October 25th, 2010
Daily Nation
NAIROBI — Kenya lost about Sh156 billion between 2000 and 2008 to illicit outflows of capital perpetuated by wealthy businesspeople and multinationals. These resources can finance about 70 per cent of Kenya’s 2010/11 development budget of Sh222 billion.
Global Financial Integrity (GFI) director Raymond Baker said intra-company deals represent about 50 to 60 per cent of cross-border trade where most of the money is lost through clever accounting. “I have never known a multinational, multibillion-dollar, multiproduct corporation that doesn’t use fictitious transfer pricing in some part of its business to shift money in some of its entities,” Mr Baker says.