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KRA Summons Morara Kebaso Over Ksh186.3M Tax Evasion

Morara Kebaso was accused of evading Ksh186.3 million in taxes.
Morara Kebaso was accused of evading Ksh186.3 million in taxes. Photo courtesy.
  • Morara Kebaso was accused of evading Ksh186.3 million in taxes.
  • Five businesses linked to him allegedly failed to file tax returns.
  • KRA says he owes Ksh27 million in unpaid VAT and income tax.
  • Summoned to KRA Nairobi offices on January 13, 2024.

The Kenya Revenue Authority (KRA) has summoned activist Morara Kebaso over claims of tax evasion totaling Ksh186.3 million. KRA says his businesses failed to file returns or declared no income despite large deposits.

The Allegations

Kebaso is linked to five businesses:

  1. I grow Digital Enterprise
  2. Morara Home Furniture
  3. Luku Fashion
  4. Morara Properties Limited (Blacksmith Morara Limited)
  5. Backtent Security Limited

KRA investigations revealed that these companies made significant deposits, mainly through M-Pesa pay bill transfers. For instance, Morara Home Furniture had Ksh146.9 million in deposits, making up 80% of the total Ksh186.3 million.

KRA also says Kebaso’s businesses earned more than Ksh5 million annually but were not registered for Value Added Tax (VAT). They estimate VAT dues at Ksh25.7 million and unpaid income tax at Ksh1.4 million for 2022 and 2023.

Asset Discrepancies

KRA found that Kebaso owns six vehicles, including a Renault Van Land Cruiser Pick-Up, a Land Cruiser Prado, and Volkswagen Passat, a Tuk-Tuk, Motorcycle. These assets do not match his financial declarations.

Kebaso was summoned to KRA’s Nairobi offices on January 13, 2024, to provide records such as invoices, payrolls, and bank statements.

KRA accuses him of breaking the law, including: Not filing tax returns. Fraud. Failing to register for VAT. If guilty, he could face fines, jail time, or both.

KRA is cracking down on tax evasion and wants Kebaso to pay what they say he owes. Depending on his response to the summons, the next steps will depend on his response.

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