Hughes Obilo, a Kenya Revenue Authority (KRA) official based in Kisumu, has been arrested by the Ethics and Anti-Corruption Commission (EACC) in a case involving the demand and receipt of a bribe from a construction company.
Obilo worked in the Debt Refunds Department in Kisumu. According to EACC, the officer demanded KSh100,000 from the construction company in connection with the clearance of tax arrears amounting to about KSh4.5 million recorded on the iTax system.
The payment was also linked to the issuance of a Tax Compliance Certificate.
The arrest was carried out on Monday, September 14, 2026, when EACC officers conducted an operation in Kisumu. Obilo was arrested while receiving KSh30,000, which investigators said was part of the KSh100,000 demanded from the company.
Following the arrest, Obilo was taken to Kisumu Central Police Station, where he was processed and recorded a statement as investigators prepared for the next stage of the case.
The matter has placed attention on the way tax-related services are handled at public offices. Businesses rely on KRA services to clear tax obligations and obtain documents such as Tax Compliance Certificates.
These services are important for companies seeking to continue operating, secure contracts and meet statutory requirements.
The case therefore raises serious questions about what happens when an individual officer links an official government service to a personal payment. A company dealing with tax arrears should be able to resolve the matter through the established KRA procedures without being required to make an unofficial payment to an individual officer.
The amount involved also stands out. The company had tax arrears of about KSh4.5 million, while the officer is said to have demanded KSh100,000 to facilitate the clearance of the debt from the iTax system and the issuance of the compliance certificate. On the day of the operation, investigators arrested him while he was receiving KSh30,000.
For businesses, such conduct can create an unfair environment where access to routine government services appears to depend on additional payments. It can also weaken confidence in tax administration, particularly when companies are expected to meet their obligations through formal channels.
The arrest is part of EACC’s continued efforts to deal with corruption and bribery in public service. The commission has maintained that public officers who misuse their positions for personal benefit will face action.
The case is particularly significant because KRA plays a central role in collecting revenue used to finance government programmes and public services. The credibility of the tax system depends not only on taxpayers meeting their obligations but also on officers carrying out their duties lawfully and transparently.
A tax compliance certificate is an official document, while tax arrears are matters that should be addressed through recognised procedures. Any attempt to turn such services into private transactions can damage public trust and make it harder for honest businesses to navigate the tax system.
The operation in Kisumu also shows the importance of reporting corruption in public offices. Investigations and enforcement action can only take place when cases are brought to the attention of the relevant authorities and evidence is gathered.
Obilo’s arrest now moves the matter into the legal process.
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