The loss of government revenue due to tax avoidance/evasion strategies by
multinational companies has received significant attention in recent years in both
developed and developing countries. It is widely accepted that the extractive sector
is particularly vulnerable to tax evasion. Kenya has the opportunity to benefit from
the lessons learned in other jurisdictions in order to maximize the revenue benefits
it receives from oil and natural gas. This paper seeks to provide a framework for
assessing the risk of potential revenue loss and prioritizing possible responses.