by Frankline Oduor on Wednesday, 10 June 2026 – 9:02 am President William Ruto with home owners during the handover of Affordable Housing units on Tuesday, May 20, 2025. PCS The Auditor-General has flagged major gaps in the collection of the Affordable Housing Levy, revealing that the Kenya Revenue Authority (KRA) failed to onboard eligible taxpayers onto the levy platform, leading to under-collection of revenue. Appearing before the National Assembly Departmental Committee on Finance and National Planning on Tuesday, Auditor-General Nancy Gathungu outlined a series of weaknesses in KRA’s revenue collection systems as lawmakers scrutinised the Finance Bill, 2026. Among the concerns raised was the implementation of the Affordable Housing Programme, one of the government’s flagship initiatives under the Bottom-Up Economic Transformation Agenda (BETA). According to Gathungu, KRA failed to register all eligible taxpayers on the Affordable Housing Obligation platform, creating loopholes that undermined the collection of the levy. President William Ruto laying the foundation stone of the Mbale County Strategic Market, March 19, 2026. PCS The revelation comes at a time when the government is seeking to increase revenue collections to support ambitious spending plans in the 2026/27 financial year. The Affordable Housing Levy, which is deducted from employees’ and matched by employers, was introduced to help finance the government’s affordable housing programme and related infrastructure projects. However, the Auditor-General’s findings suggest that weaknesses in implementation may have prevented the government from collecting all the revenue it was entitled to receive . The issue formed part of a wider audit that pinpointed several challenges within KRA’s tax administration system, including revenue leakages, outstanding tax debt, and compliance failures. Gathungu warned lawmakers against relying on overly optimistic revenue projections without first addressing inefficiencies within the country’s tax collection framework. “The trend in revenue shortfall raises major concerns about the accuracy of revenue projections in the national budget,” the Auditor-General told the committee. Her presentation also identified other weaknesses within KRA’s operations, including the issuance of Tax Compliance Certificates to taxpayers with pending obligations, missing excise stamps, and the processing of imports using expired Gazette Notices. Members of the Finance Committee expressed concern over the findings, with some lawmakers arguing that government agencies should first seal revenue leakages before imposing additional tax burdens on Kenyans. The committee is expected to engage KRA officials on the issues raised by the Auditor-General as Parliament continues its consideration of the Finance Bill, 2026 and the government’s revenue-raising measures. An undated image of the KRA entrance Photo KRA Latest News Audit Exposes Major Gaps in Affordable Housing Levy Collection Wed, 10 Jun 2026 – 9:02 am Gulf Nation Bans Hiring of Domestic Workers From Kenya & 26 Other Countries Wed, 10 Jun 2026 – 8:52 am Govt Directed to Terminate Contracts in Ksh 45B Project Wed, 10 Jun 2026 – 8:08 am UN Announces Hundreds of Job Openings With Monthly Stipends for Kenyans Wed, 10 Jun 2026 – 7:36 am Trump Govt Sends Message to Ruto Over Ebola Virus Response Amid Protests Wed, 10 Jun 2026 – 7:16 am Former MP Arrested Tue, 9 Jun 2026 – 8:07 pm Inside Gachagua’s New Strategy to Unseat Ruto After Impeachment Setback Tue, 9 Jun 2026 – 7:51 pm County Official Faces Prosecution Over Refusal to Release Public Records Tue, 9 Jun 2026 – 7:38 pm Ruto Reshuffles PSs Tue, 9 Jun 2026 – 6:52 pm CBK Releases Lending Rate Affecting All Loans Tue, 9 Jun 2026 – 5:43 pm Serbian National Among Four Arrested in DCI Raid at Nairobi Apartment Tue, 9 Jun 2026 – 5:13 pm MP Pushes for Abolition of all Boarding Schools Tue, 9 Jun 2026 – 4:34 pm Load More