The National Assembly Public Investments Committee on Commercial Affairs and Energy has raised concerns about the alleged lack of tax compliance by the Geothermal Development Agency (GDA).

Under the leadership of Committee Vice-Chairperson Hon. Lillian Gogo (Rangwe), Members Invited the GDA leadership to shed light on audit queries raised by the Auditor General in the Agency's financial books between the 2017/2018 Financial Year and the 2020/2021 Financial Year.

The Committee noted that the Agency had a tax liability of Ksh. 197.9 Million in the 2019/2020 Financial year, with the Auditor General indicating that in the 2020/2021 Financial Year, GDA's Income tax balance of Ksh. 131.5 Million may not have been fairly stated.

Hon. Gogo questioned why the Agency had not remitted its taxes as legally required despite there being no evidence of exception from the same.

"What you have shown us is a letter that you wrote to the National Treasury requesting an exemption. There is no evidence that the Kenya Revenue Authority (KRA) has ever exempted you from tax," said Hon. Gogo

Among the Auditor General's other queries during the years under review, were the long outstanding tax penalties, wasteful expenses, and stalled projects.

The Committee noted the Auditor General's concerns that the Agency had not complied with International Financial Reporting Standards on Grants and other receivables balance totaling Ksh. 2.3 Billion.

The GDA Managing Director Mr. Paul Ngugi sought more time to avail more comprehensive responses to the Committee.