The Ethics and Anti-Corruption Commission (EACC) has arrested a Kenya Revenue Authority (KRA) official in Kisumu over allegations that he solicited a Sh100,000 bribe from a construction company in exchange for helping clear millions of shillings in tax arrears.
The suspect, identified as Hughes Obilo, is an officer attached to KRA’s Debt Refunds Department in Kisumu.
He was arrested on Monday, September 14, 2026, during an operation mounted by EACC investigators following preliminary investigations into the allegations.
KRA officer allegedly demanded Sh100,000
According to information released following the arrest, Obilo allegedly demanded Sh100,000 from a construction company to facilitate the removal of outstanding tax arrears amounting to approximately Sh4.5 million from the iTax system.
The alleged arrangement was also linked to the issuance of a Tax Compliance Certificate (TCC) to the company.
A Tax Compliance Certificate is an important document for businesses and individuals dealing with various government processes, including tenders and other transactions where proof of tax compliance is required.
EACC alleged that the KRA officer offered to facilitate the clearance of the company’s tax liabilities outside the normal procedures.
The commission subsequently conducted a sting operation designed to catch the suspect while receiving the money.
Suspect allegedly caught receiving Sh30,000
Investigators arrested Obilo after he allegedly received Sh30,000, said to be part of the Sh100,000 amount he had demanded.
Following his arrest, he was taken to Kisumu Central Police Station, where he was booked as investigations and statement-recording procedures got underway.
The arrest does not amount to a conviction, and the allegations against Obilo will have to be tested through the appropriate legal process.
EACC steps up fight against bribery
The Kisumu arrest comes amid continued efforts by EACC to investigate corruption allegations involving public officers.
The commission has previously encouraged members of the public to report suspected corruption in government institutions and the private sector, with complaints forming part of the information sources used to initiate investigations.
In the latest case, investigators appear to have acted after receiving information concerning the alleged demand for money, conducting preliminary inquiries before moving in to make the arrest.
EACC reiterated that public officers should not use their positions to obtain personal financial benefits from members of the public.
The commission warned that it would continue taking action against officials suspected of abusing their offices for private gain.
Why the case is significant
The allegations are particularly significant because the suspected transaction involved the iTax system and tax compliance, areas that directly affect businesses operating in Kenya.
For a company facing millions of shillings in tax liabilities, obtaining assistance from a government official to have the debt removed could potentially provide a significant financial advantage.
However, legitimate tax disputes and outstanding liabilities are expected to be handled through established KRA procedures rather than private arrangements involving individual officers.
The case therefore highlights the importance of transparency in the administration of tax-related services and the role of oversight agencies in protecting public institutions from corruption.
As the investigation continues, authorities are expected to establish the circumstances surrounding the alleged payment, whether other individuals were involved and the exact nature of the proposed intervention in the company’s tax records.
For now, Obilo remains a suspect, and any further action, including possible prosecution, will depend on the outcome of the investigations and decisions by the relevant authorities.
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