Car dealer Joseph Kairo Wambui better known as Khalif Kairo and his company Kai & Karo Limited has been charged with tax fraud charges. In a statement dated May 26, Kenya Revenue Authority (KRA) said the businessman was charged at Nyeri Law Court.
After thorough investigation, KRA established that Kairo being the director of Kai & Karo Limited, knowingly misdeclared a Land Rover Range Rover Vogue as a used Land Rover Range Rover Sport on 10th January 2024 to evade payment of customs duty of Kshs.1,283,830/-.
Kairo was charged with the offence of being knowingly concerned with fraudulent evasion of payment of duty. He pleaded not guilty to the charge and was granted bond of Kshs.500,000/-.
The case has been scheduled for mention on June 4, 2025. Should he be found guilty, Kairo could face a prison term of up to three years or a fine not exceeding Kshs.1 million, reflecting the severity of the offense under Kenyan tax laws.
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Other Tax Fraud Cases
In Kericho, another businessman, Joseph Kiprob Koech, was arraigned before Senior Resident Magistrate Daniel Sitati Sifuma on charges of tax fraud involving a whopping Kshs.83,774,330.
KRA’s investigations revealed that between 2014 and 2020, Koech failed to declare substantial income earned during this period, thereby evading tax obligations.
Additionally, he is accused of inflating business expenses to artificially reduce his tax liability, a tactic designed to deceive tax authorities. Koech pleaded not guilty to all charges and was granted a bond of Kshs.3 million.
If convicted, he faces a hefty fine of Kshs.10 million or double the amount of tax evaded, or imprisonment for up to five years.
In Nairobi, at the Milimani Law Court, John Maina Peter, the director of Edgepine Company Limited, was charged with employing fictitious invoices to perpetrate tax evasion. The fraudulent invoices, totalling Kshs.42,265,171, were allegedly used between 2019 and 2023 to underreport Value Added Tax (VAT) obligations to the KRA, resulting in a tax shortfall of Kshs.6,762,428.
Appearing before Senior Principal Magistrate P.K. Mutai, Maina denied the accusations and was released on a bond of Kshs.500,000.
Tax Evasion
In Meru County, trader Samuel Matiba Kithia faced charges at the Meru Law Court for tax evasion amounting to Kshs.3,388,776.34, linked to the use of counterfeit tax stamps.
Kithia was apprehended on December 11, 2024, in the Iluru area of Maua Town, Igembe South Sub-County, while in possession of assorted second-generation liquor brands valued at Kshs.6,855,000.
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KRA found the liquor to be affixed with counterfeit excise stamps, a violation that undermines the integrity of tax collection on excisable goods. Kithia pleaded not guilty and was granted a bond of Kshs.1 million, with his case set for mention on June 4, 2025
A conviction could lead to a prison sentence of up to three years, a fine of up to Kshs.5 million, or both, as stipulated in the Excise Duty Act 2015, amended by Section 43 of the Finance Act 2023.
KRA also promised to remain steadfast in its mission to uncover and address tax evasion schemes that result in significant revenue losses for the country.
By pursuing these cases, KRA aims to foster a culture of compliance with tax laws and regulations while ensuring a level playing field for businesses operating within Kenya’s markets. These legal actions serve as a stern warning to individuals and entities contemplating fraudulent practices, emphasizing that such actions will face rigorous investigation and prosecution.
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