This archive report was first published on 24 October 2019.
On October 24, 2019, the Kenya Revenue Authority (KRA) charged two owners of Microbit Systems, Mr Ali Hassan Apei and Mr Bashir Hassan, with failing to remit taxes amounting up to Sh237 million.
The company, contracted by the government to distribute relief food to affected families in Mandera, Marsabit, Garissa, and other drought-prone areas in the north Eastern region, has been charged with 10 counts of tax evasion.
Defending both suspects, Legal counsel Phillip Murgor argued that Mr Hassan had resigned from the company in 2012 and should not have been charged, as the charges were for the years 2013-2019.
“The government has not paid Microbit over Sh200 million for services rendered, which is almost the amount alleged to have been defaulted in tax,” Mr Murgor told the court.
The lawyer claimed efforts to negotiate with the taxman were in vain, stating, “We presented proposals of settling the tax claim to KRA, but officers declined and insisted on charging the directors.”
The accused were released on a cash bail of Sh1 million each, with the case set to be heard on November 5.
