A couple based in Eldoret has been charged with evading taxes amounting to Ksh. 177 million, in one of the latest high-profile crackdowns on tax fraud by the Kenya Revenue Authority (KRA). Wilfred Karongo Njoroge and Rosemary Wanjiru Wanjiku, both directors of Wa Morgan Wholesalers Limited, were arraigned at the Eldoret Law Courts on Friday, where they faced a series of tax-related charges.
The two jointly faced seven counts of tax fraud, including failure to remit both income tax and Value Added Tax (VAT) for the financial years 2023 and 2024. The unremitted taxes from these two years amounted to Ksh. 63,863,512. In addition to this, they were also charged with failure to submit tax returns and failure to register for VAT, despite being engaged in taxable business activities.
Separately, Karongo faced an additional 11 counts of tax evasion. These included failure to declare and pay taxes totalling Ksh. 113,393,043, involving both income tax and VAT. The charges accuse him of knowingly omitting to declare taxable income, thus violating tax laws under the Tax Procedures Act, 2015. He was also charged for failing to register for VAT despite supplying goods subject to VAT.
The accused denied all charges when they appeared before Senior Resident Magistrate Kyene Odhiambo Gweno. They were released on a bond of Ksh. 10 million each, with the alternative of a Ksh. 1 million cash bail. The case is scheduled for mention on 14th April 2025.
According to the Tax Procedures Act, 2015, if convicted, the accused could face a fine double the amount of tax evaded or imprisonment for a term not exceeding five years, or both.
The case underscores the KRA’s heightened efforts to combat tax evasion and ensure compliance among businesses and individuals. It also serves as a stern reminder to companies and their directors of the legal obligations surrounding tax registration, filing, and payment, especially when dealing with large-scale commercial operations.
