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The Kenya Revenue Authority (KRA) is investigating political activist Morara Kebaso for allegedly failing to file tax returns on Sh186 million earned by his businesses over the past three years.
The taxman claims that Kebaso’s businesses have failed to file tax returns on Sh186 million generated in sales over the past three years.
KRA has singled out five companies linked to him: Igrow Digital Enterprise, Morara Home Furniture, Luku Fashion, Morara Properties Limited, and Backtent Security Limited, accusing them of either declaring no income or failing to file returns despite owning valuable assets.
As part of the investigation, KRA has pointed to three of Kebaso’s bank accounts, which have received substantial deposits, mainly through M-Pesa.
Morara Home Furniture, in particular, is said to have received Sh146.9 million, nearly 80% of the total deposits across the three accounts.
According to KRA, these deposits suggest undeclared income and a failure to register for VAT, as required by law.
Morara Kebaso’s response
Kebaso, however, denies any wrongdoing, insisting that he is a law-abiding citizen and that the accusations are politically motivated.
He said KRA issued him certificates of tax compliance for the years 2022 and 2023.
Despite this, KRA has calculated that his businesses owe Sh27 million in taxes, Sh25.7 million in VAT and Sh1.37 million in income tax.
Additionally, KRA has found that Kebaso owns several vehicles, including four cars, a motorcycle, and a tuk-tuk, which he has failed to report in his tax filings.
In light of these findings, the tax authority has summoned him to appear at its Nairobi offices on January 13, 2024, to provide further documentation related to his businesses' financial records.