It is reported that 14 skins and hides exporters and government officials have been involved in a tax evasion operation that may have cost the government KES676 million ($9.2 million) over the last four years.

The exporters are said to have devised various schemes to evade export duty, Veterinary Services Development Fund levy and income tax as well as fraudulently claimed VAT refunds. Methods included the wrong grading of products and under-declared quantities. Falsified documents were also used.

The Kenya Anti-Corruption Commission (KACC) team carried out search operations at the traders' premises and recovered evidence in the form of documents and electronic files. The traders' tax liabilities were also scrutinised. KACC wants the companies to be prosecuted for their actions and has called for more vigorous testing methods to be enforced within the export industry.