Company Directors Slapped with Arrest Warrants Over Tax Evasion

The Kenya Revenue Authority (KRA) has obtained arrest warrants for three directors of Liban Trading Limited over allegations of concealing income amounting to more than Ksh740 million in undeclared earnings.

The warrants were issued by Mombasa Resident Magistrate Gladys Ollimo after the directors failed to appear in court.

The trio faces three counts of filing false tax returns and evading tax liability, contrary to sections 97 and 104 of the Tax Procedures Act.

According to KRA, Liban Trading Limited declared nil income in its tax filings despite generating more than Ksh740 million in revenue between 2020 and 2023, resulting in an estimated revenue loss of Ksh200 million to the government.

The case is set to be mentioned on November 18, 2025.

KRA counterfeit excise goods

If found guilty, the accused could face fines of up to Ksh10 million or double the amount of taxes evaded, whichever is higher, and up to five years in prison under the Tax Procedures Act.

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In a related case, the same court charged a man with possession of 34 cartons of vodka bearing counterfeit excise stamps.

He denied the charges of possessing counterfeit excise goods, contrary to Section 28 of the Excise Duty Act, 2015, and was released on Ksh50,000 cash bail.

KRA said it has intensified enforcement operations targeting tax evasion schemes, including false income declarations, smuggling, and the use of counterfeit tax stamps.

Increased Surveillance

The authority also reported increased surveillance along major transport corridors and at border points to intercept illicit goods and crack down on individuals who aid or abet tax evasion.

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“Taxpayers are encouraged to ensure compliance by making accurate income declarations and paying the requisite taxes to avoid enforcement measures, including prosecution,” the authority said in a statemen.

KRA also urged business owners and transporters to exercise due diligence when handling goods to ensure all consignments are legitimate and well documented, warning that failure to comply could result in the seizure of trucks and prosecution.

The authority further appealed to the public to report suspected tax evasion through its anonymous whistleblower portal at https://iwhistle.kra.go.ke

 or by calling +254 20 4 999 999.

“KRA remains committed to deterring and disrupting tax evasion and ensuring that every person pays their fair share of taxes,” the statement said.

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