This archive report was first published on 4 October 2019.
On October 4, 2019, the Kenya Revenue Authority (KRA) arrested six directors of clearing and forwarding firms for tax evasion.
The suspects, directors of clearing agent companies, allegedly evaded payment of duty through tariff misclassification and under valuation of motor vehicles.
Investigation and Enforcement Department Commissioner David Yego stated that the vehicles were declared using a tariff code that attracts a 10% import duty instead of the correct code that attracts 25% import duty.
Yego further noted that Manjok International Limited, a second-hand motor vehicle importation company, made a declaration of 87 vehicles under the wrong tariff code, evading payment of Shs. 53,878,677 in taxes from 2016 to September 2019.
The arrests followed lengthy investigations carried out by KRA's Investigation and Enforcement Department, supported by the Revenue Protection Services (Directorate of Criminal Investigations).
Mr. Dennis Bundi Muchira, a broker entrusted with the importer's money, is currently on the run and being sought by police.
