Kenya: Potential Revenue Losses Associated with Trade Misinvoicing
Analysis of trade misinvoicing in Kenya in 2013 shows that the potential loss of revenue to the government was $907 million for the year, according to a study by Global Financial Integrity. To put this figure in context, this amount represents eight percent of total annual government revenue as reported to the International Monetary Fund. Put still another way, the estimated value gap of all imports and exports represents approximately 23 percent of the country’s total trade. This report analyzes Kenya’s bilateral trade statistics for 2013 (the most recent year for which sufficient data are available) which are published by the United Nations (Comtrade). The detailed breakdown of bilateral Kenyan trade flows in Comtrade allowed for the computation of trade value gaps that are the basis for trade misinvoicing estimates.