A Mombasa court ordered the arrest of three directors of a company facing allegations that they failed to remit income worth hundreds of millions of shillings, which the Kenya Revenue Authority (KRA) has termed a big tax evasion case.
The managers, whose company has been receiving and selling rice, failed to appear in court to provide explanations as to why they had failed to comply with tax regulations.
The company was charged with earning KSh740 million in the past three years but had consistently lodged nil returns, causing estimated revenue loss of KSh200 million.
Resident Magistrate Gladys Ollimo issued the warrants of arrest upon default by the three to appear in court on Monday. The case will be mentioned on November 18, 2025.
In a statement, KRA pointed out that making false or misleading statements that have a material effect on tax liability violate Sections 97 and 104 of the Tax Procedures Act (2015).
“Company directors did not turn up before the Court, and accordingly, the Mombasa Resident Magistrate, Gladys Ollimo, issued warrants of arrest upon the prosecution’s application,” KRA said.
If convicted, the accused would face a penalty of a fine of between KSh10 million and twice the value of tax evaded whichever is higher or to a prison term of up to five years.
Crackdown on Tax Evasion
The revenue agency pledged to heighten its nationwide crackdown on tax evaders, stating that businesses that use crooked schemes to evade tax would be dealt with accordingly.
KRA also pledged to heighten surveillance of border crossing points to inspect smuggling and ensure all merchandise entering or leaving the country is declared accordingly.
“Taxpayers are encouraged to stay in compliance with their tax obligations by filing proper income returns and paying up required taxes to avoid punitive enforcement action, like prosecution,” the agency urged.
The authority also encouraged Kenyans to report suspected cases of tax evasion via its official hotlines or iWhistle online platform.
“Businessmen, especially truckers, are cautioned to be cautious when handling merchandise to ensure they have all the information regarding the shipments they are carrying,” KRA said.
The issue comes on the backdrop of the government’s renewed push to plug revenue loopholes as it ramps up its bid to raise its target levies in the midst of growing budget constraints.
