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Political activist and Chairman of the Morara Group of Companies Morara Kebaso has spoken out following reports of a tax investigation by the Kenya Revenue Authority (KRA).
Taking to social media, Kebaso expressed frustration over the public nature of the investigation, labelling it as an attempt to suppress his outspoken criticism of corruption and mismanagement in Kenya.
"Tax matters are private and confidential. I don’t know why mine is being investigated in the media," Kebaso wrote.
He emphasised his commitment to adhering to the law, stating, "I have always been ready and willing to lawfully pay all taxes."
Kebaso alleged that the investigation is politically motivated, describing it as a "weaponised" attack aimed at silencing his advocacy for truth and accountability.
"This is a clear attempt to push me to my knees so that I agree to collaborate with corrupt leaders in the mismanagement of our country," he said.
The Morara reassured his followers that he remains undeterred, vowing to continue speaking truth to power.
"Kenyans are very wise. They can differentiate a genuine tax investigation and a political witchhunt. I will continue to speak truth to power without fear," he declared.
Clarification on Igrow Digital Enterprise
In a separate post, Kebaso addressed claims linking him to Igrow Digital Enterprise, an entity reportedly under KRA's scrutiny.
He clarified that he does not own the business and provided a backstory to its creation.
"For the record, I do not own Igrow Digital Enterprise. It is a youth group that we registered as schoolmates in 2014 when we were in the university," he explained.
The group, he said, was formed to start a dog-breeding business focused on breeds such as German Shepherds, Springer Spaniels, and Japanese Spitzes.
Kebaso further revealed that the business never took off due to a lack of capital.
"We hoped to get money from the government through the Youth Enterprise Fund but never did," he added.
Details of the tax claims
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.
Kebaso, however, denies any wrongdoing, insisting that he is a law-abiding citizen and that the accusations are politically motivated. He has provided certificates of tax compliance for the years 2022 and 2023 to support his claim.
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.