Kenya Revenue Authority has distanced itself from reports that it was investigating the multi-billion real estate project Tatu City for alleged loss of KSh 1.3 billion. The Authority also dismissed social media reports that it was demanding billions of shillings in unpaid Stamp Duty and Income Tax from the real estate company.
Deliberate and persistent attempts to extort from Tatu City…the culprits are know… pic.twitter.com/qNEoSbU5mo
— Ahmednasir Abdullahi SC (@ahmednasirlaw) October 22, 2018
Days earlier, the Ethics and Anti-Corruption Commission (EACC) launched investigation into alleged multi-billion shillings money laundering and tax fraud at Tatu City and Kofinaf companies. The anti-graft body in collaboration with other investigative agencies had reportedly requested for information touching on several parcels of land belonging to Tatu City amid probe.
The probe commenced after KRA stopped sale of properties owned by the two firms. Appearing before the National Assembly’s Lands Committee on October 7, 2018, Commissioner General John Njiraini disclosed KRA had stopped the two companies from selling any of their properties until all investigations are concluded .
The Lands Committee has been investigating alleged theft and a number of other allegations that had been raised by the local investors who have been at loggerheads with their foreign partners in the Tatu City project. In documents presented before the Committee in August 2018, Stephen Mwagiru, a minority shareholder, and Nahashon Nyagah, Tatu City chairman, accused foreign investors Stephen Armstrong Jennings, Frances Holiday, Frank Mosier, Hans Jochum Horn, Christopher John Barron and Andrew Rowell of wiring back to their countries billions of shillings while under-declaring tax returns.
The foreign investors were yet to appear before the Committee to defend themselves against the grave allegations as of October 23, 2018.