How Lugari MP Ayub Savula Made Sh1 Billion from State Agencies But Filed Nil Tax Returns

The Kenya Revenue Authority (KRA) and the Directorate of Criminal Investigations (DCI) have launched a probe into a tax evasion scheme by Lugari Member of Parliament Ayub Savula.

Court documents filed by KRA show that Savula filed nil returns for five years despite receiving huge payouts from contracts signed with several State agencies and County governments.

The taxman says Savula, through his company Sunday Publishers Limited, earned Sh1 billion in five years from the contracts but never remitted taxes.

The cash was received between 2013 and 2017 from the National Hospital Insurance Fund (NHIF), Ministry of Energy, Nairobi County Government, Migori County, Mombasa County and the National Lands Commission (NLC).

KRA is now demanding Sh473.8 million from the ANC MP in tax arrears and accrued interest.

The Business Daily reports that Sunday Publishers received Sh84 million in 2013, Sh174 million in 2014, Sh397 million in 2015, Sh150 million in 2016, and Sh207 million in 2017.

The firm filed zero returns in 2015, 2016 and 2017 and didn't file any returns in 2013 and 2014.

Savula, who co-owns the company with his wife, Hellen Kemboi has moved to court to block their arrests.

In court filings, Savula and Hellen have sought “a declaration that the respondents impending and imminent arrest, detention and prosecution of the applicants amount to a gross violation of the petitioners’ fundamental rights and freedoms under the Constitution and under the relevant tax laws.”

Last year, Savula alongside his wives; Kemboi and Gatwiri Ringera were arrested on claims of conspiring to steal Sh122 million from the Ministry of ICT.

The three denied the charges and were released on Sh500,000 cash bail each or Sh1 million bond.