A Mombasa court has issued arrest warrants for three directors of a company involved in the importation and selling of rice after failing to declare their income to the Kenya Revenue Authority (KRA).
In a statement on Monday, October 27, the authority claimed that despite the company having an income totalling Ksh740,129,552 over the past three years, the company declared nil returns, which in turn led to a revenue loss of Ksh200 million.
The authority claimed that the arrest warrants of the directors were issued by Mombasa Resident Magistrate Gladys Ollimo after the three failed to appear in court to explain why they had failed to comply with tax regulations.
Making incorrect statements affecting tax liability contravenes Sections 97 and 104 of the Tax Procedures Act (2015), according to the authority.
"The directors of the company were not present before the Court and therefore the Mombasa Resident Magistrate, Gladys Ollimo, issued warrants for their arrest following the prosecution’s application," KRA stated.
"The case will be mentioned on 18th November, 2025. If found guilty, the accused persons may be liable to a fine of Ksh10,000,000 or double the taxes evaded, whichever is higher, or imprisonment for a term not exceeding 5 years as provided for by the Tax Procedures Act, 2015," it added.
If found guilty, the directors will be liable to a fine of Ksh10 million or double the taxes evaded, or imprisonment for a term not exceeding five years, according to the authority.
Crackdown Against Tax Evaders
The authority has further affirmed that it will reinforce its crackdown against entities that are deploying such strategies to evade tax.
Additionally, KRA has said that it will pump more resources across all border points to weed out individuals who are illegally smuggling goods in and out of the country to avoid taxes.
While encouraging the public to ensure that they remain compliant with their tax obligations, the authority has urged Kenyans to ensure that they report any instances of tax evasion through its official telephone numbers or its iWhistle website.
"Taxpayers are encouraged to ensure compliance with their tax obligations through making correct income declarations and paying the requisite taxes to avoid punitive enforcement measures, including prosecution," KRA stated.
"Businesspersons, especially transporters, are encouraged to ensure due diligence when conveying goods to ensure they have full particulars of the goods and the owner of the consignment they are transporting," it added.
