Two directors of Wa Morgan Wholesalers Limited, a well-known company in Eldoret, have been charged with tax fraud amounting to Ksh. 170 million. The accused, Wilfred Karongo Njoroge and Rosemary Wanjiru Wanjiku, appeared before the Eldoret Law Courts on Friday, where they faced multiple counts of evading tax.
This case forms part of a wider effort by the Kenya Revenue Authority (KRA) to clamp down on tax evasion and ensure compliance among businesses across the country. The charges highlight the growing focus on corporate tax responsibility in Kenya, especially in Eldoret, one of the region’s key commercial hubs.
The Tax Evasion Charges
The couple faces seven charges of failing to pay various taxes, including income tax and Value Added Tax (VAT), for the years 2023 and 2024. According to the KRA, the directors evaded taxes totaling Ksh. 63.8 million. The business was also found to be operating without proper VAT registration, despite engaging in taxable activities that should have been reported and taxed.
Additionally, Wilfred Karongo Njoroge faces 11 further charges related to omissions on income tax filings. These charges accuse him of failing to declare taxable income and evading Ksh. 113.4 million in taxes.
The charges come at a time when KRA has ramped up efforts to tackle corporate tax fraud, with significant penalties awaiting those found guilty.
Court Ruling and Bail Terms
In the proceedings before Senior Resident Magistrate Kyene Odhiambo Gweno, the accused individuals pleaded not guilty to all charges. The court granted them bail, setting a Ksh. 10 million bond or an alternative cash bail of Ksh. 1 million each.
The case will be mentioned again on April 14, 2025, for further hearings as the KRA continues its investigation into the company’s financial activities. This delay indicates that further details about the tax evasion will unfold as the case progresses.
The Wider Implications of the Case
This case represents a growing crackdown on tax fraud by the Kenya Revenue Authority. Tax evasion has long been a challenge for the Kenyan government, with businesses often underreporting their profits or failing to comply with tax laws.
KRA has vowed to intensify its efforts to ensure businesses across the country are paying their fair share of taxes. If convicted, the accused face fines of up to double the evaded tax or imprisonment for up to five years, making this case a significant milestone in the government’s fight against tax fraud.
Story was first published on Nation
