Firms risk KRA bank, assets seizure over unremitted pension

A proposed bill, the Kenya Revenue Authority (Amendment) Bill, 2026, will allow the tax authority to freeze bank accounts, seize assets, and deactivate tax PINs of employers who fail to remit pension contributions deducted from workers' salaries. Unremitted pensions stood at Sh66.41 billion at the end of December 2025, up from Sh47.1 billion in June 2024. The Retirement Benefits Authority (RBA) lobbied for KRA to use enforcement measures such as garnishee orders to recover these funds. Existing law under Section 42 of the Tax Procedures Act already empowers KRA to deactivate PINs, issue travel bans, and prosecute executives for defaults.