Kenyan Businessman Charged with Tax Evasion Amounting to Sh15 Billion

Businessman Keval Kumar was on Thursday arraigned before Makadara Chief Magistrates Court where he was charged for evading tax totaling to Sh15 billion.

Kumar is alleged to have defrauded or aided in defrauding Sh2,459,121,896 in Value Added Tax (VAT) and an additional Sh4,610,853,556.80 in income taxes.

In a statement, Kenya Revenue Authority (KRA) boss John Njiraini said the businessman was arrested after they found that he had registered more than nine business names and made fake invoices in the upwards of Sh15.3 billion.

"Officers from KRA Investigations and Enforcement Department conducted a search on the residential premises of the suspect on April 4, and confiscated crucial documents and electronic devices including ten ETR machines," Njiraini said.

Njiraini said that KRA had closely been monitoring the suspect prior to his arrest. If found guilty, Kumar could be sent to prison for ten years or a fine of double the amount of taxes he attempted to evade.

"The invoices are generated and sold at a fee by the missing traders to existing companies purposely for use in inflating the cost of sales thereby reducing tax payable," Njiraini said.

The taxman is investigating about 66 missing traders and more than 2,000 beneficiaries of the scheme.

"Investigations have been extended to those taxpayers who benefited from the scheme and taxes lost recovered through the relevant provisions of the tax laws. Prosecution of culpable individuals will also continue."