Detectives and officers from the Kenya Revenue Authority (KRA) are investigating a tax evasion syndicate revolving around a cache that was seized by Sleuths in Ruiru on Friday. KRA investigating officers believe that diversion of the goods, which comprise of electronics and tyres, which were on transit to South Sudan into the local market was a scheme by unknown individuals to evade taxes. The consignment which was in five containers is estimated to be work between sh 80 million to sh 100 million according to KRA Chief Investigating Officer Mutembei Nyaga who noted that investigations are still underway to ascertain the actual value and the amount of money evaded in taxes.
Nyaga spoke to journalists during a verification exercise of some of the goods that had been stored in a warehouse within New Horizons Park in Ruiru, Kiambu County. He said they have strong evidence indicating that the goods are part of the consignment which had been declared for export but were diverted to Ruiru as a scheme of evading taxes. This is huge tax evasion syndicate involving diversion of goods into the local market. Nyaga added the verification of the goods is part of our investigations to establish the circumstances under which the goods that were destined for South Sudan found themselves in Ruiru. The officer noted that the investigations will also reveal whether it’s the owners of the goods or their agents who are behind the diversion into the local market adding that the authority is determined to dismant
le tax evasion cartel operating in such mode.
Nyaga said they will also conduct an audit on all individuals who will be apprehended on their previous business dealings to establish whether they have been evading paying taxes by disguising as exporters. They will be arraigned in court and charged with diversion of goods, tax evasion and any other charges that might arise as investigations continue. Nyaga warned traders in the country who have been engaging in such dealings to evade paying taxes that the authority will soon come knocking on their doors. He also said they are determined to bring to an end these cases of tax evasion. Last year KRA surpassed its revenue target not by design but through hard work including sealing all loopholes of tax evasion and pilferage,
On Friday last week, the office of the Director of Criminal Investigation (DCI) through its social media platforms announced seizure of the goods and arrest of three individuals behind the diversion of the goods. The sleuths indicated that the three Joseph Njoroge,35, Mohamed Noor Sheikh,34 Josphat Gitau, 37, had been arrested for diversion of the merchandise to Ruiru, Ongata Rongai and Kiserian in Kiambu and Kajiado counties respectively. The DCI indicated that the goods that belonged to a businesswoman namely Khadija Abdi Mohamud, were imported on July, 15, 2021 and were on transit to South Sudan, where she supplies to local traders, before they were diverted to Ruiru. “After the merchandise failed to arrive at its intended destination within the stipulated period, Khadija filed a police report regarding its disappearance. Detectives swung into action and through intelligence led investigations, they established that the merchandise had been diverted to Ruiru, Kiambu county and was offloaded into a warehouse within New Horizon Industrial Park,” read part of the DCI statement.