Two Businessmen Arrested Over Ksh273 Million Tax Evasion

(Photo, Courtesy)

Two businessmen Ali Hassan Apei and Bashir Hassan Abbey Mamo, both directors of Microbit Systems Limited have been arrested for tax evasion amounting to Ksh273 million.

According to the Kenya Revenue Authority (KRA), the two evaded payment of taxes from 2013 to 2017.

KRA said it received an intelligence report that Microbit Systems Limited had successfully benefited from tender proceeds from county governments and government ministries.

These include Mandera and Marsabit county governments, State Department for Special Programs, State Department for Basic Education, State Department of Devolution and Ministry of Interior & Coordination and failed to remit taxes due from payments of tenders given.

KRA said the two directors are being held at the Capital Hill to be arraigned in Milimani court on 16th October 2019.

KRA headquarters
KRA headquarters [Photo, Courtesy]
Meanwhile, the tax collector on Thursday also arrested a director of Simptons East Africa Holdings Limited Simon Odhiambo Adalla a clearing agent for using wrong trade tariffs (custom duty rates).

Using East Africa Holdings Limited, KRA indicated that the suspect fraudulently evaded duty amounting to Ksh3 million by using an incorrect customs duty rate of 10 percent instead of the applicable 25 percent in respect to the motor vehicles imported under various customs entries.

The suspect will be arraigned at the Chief Magistrates’s Court in Mombasa on Wednesda, 16th October 2019.


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