The Kenya Revenue Authority (KRA) has launched an investigation into political activist Morara Kebaso for allegedly failing to file tax returns despite generating Ksh. 186 million from five businesses he owns since 2022. These businesses, which include Backtent Security Limited, Morara Properties Limited (also known as Blacksmith Morara Limited), Luku Fashion, Morara Home Furniture, and Igrow Digital Enterprise, have been flagged for inconsistencies in their tax filings.
The investigation began after KRA noted discrepancies in the returns submitted by Kebaso’s companies. The taxman alleges that the businesses have either been reporting zero income or failing to submit any tax returns at all. This is in stark contrast to the significant revenue generated, much of which has reportedly been transferred to Kebaso’s personal bank account and to the accounts of Morara Properties Limited and Morara Home Furniture.
A notice from KRA revealed that money had been flowing into Kebaso’s personal account, primarily through M-Pesa transactions. The funds, according to KRA, were meant for expenses related to furniture and interior fittings. Additionally, KRA identified multiple M-Pesa Paybill transactions made to the business accounts of Morara Properties and Morara Home Furniture, further complicating the matter.
Kebaso, known for his political activism, now faces scrutiny over the legitimacy of his financial activities. The KRA is concerned about potential tax evasion and the misreporting of income, as this could significantly impact national revenue collection.
Kebaso’s businesses, while successful in generating substantial income, are now at the center of an ongoing investigation that could have serious legal and financial consequences. The case underscores the importance of adhering to tax regulations, especially for high-income businesses. As the investigation progresses, it will be crucial to determine whether Kebaso’s actions were intentional or the result of negligence.
The outcome of this investigation could set a significant precedent in the fight against tax evasion in Kenya’s business and political landscape.
