Two traders based in Nairobi have landed in serious trouble after being caught in two separate but very similar tax evasion schemes.
According to the Kenya Revenue Authority (KRA), the two individuals tried to dodge paying taxes by fraudulently using other people’s KRA Personal Identification Numbers (PINs).
After conducting investigations, KRA revealed that both suspects attempted to manipulate the tax system by transferring their tax responsibilities onto innocent companies that were not involved.
In the first case, a female suspect was found guilty of presenting a fake KRA PIN to her clearing agent.
Her plan was to have her imported goods cleared by customs without paying the required taxes.
Court proceedings showed that between May and August 2023, she submitted all the necessary import documents, including invoices and Import Declaration Forms, just like any other importer would.
However, instead of using her own company’s PIN, she used the PIN belonging to another company, making it look like someone else was responsible for the taxes owed.
After a thorough investigation by KRA officers, the suspect was charged with making false customs declarations, which is an offense under Section 203(b) of the East African Community Customs Management Act, 2004.
The woman denied the charges when she appeared in court. She was released on a bond of Ksh500,000, along with one surety as a condition for her release.
Her case has been scheduled for mention on May 12, where further court directions will be given.
In a separate but similar incident, a businessman from Nairobi was also charged after being found guilty of using a fake KRA PIN over an extended period of three years, from 2020 to 2023.
KRA’s investigations revealed that the businessman issued Electronic Tax Register (ETR) receipts using a PIN that was registered under a different company’s name.
Through this method, he conducted business activities while hiding his actual financial dealings, and unfairly shifted the tax burden to an unrelated entity.
This allowed him to avoid paying taxes legally due from his own business operations.
The businessman was charged with using a false KRA PIN on official tax documents, which is a serious offense under Kenyan tax laws.
He too denied the charges in court and was released on a bond of Ksh300,000, pending the hearing of his case.
In a public statement, KRA emphasized that the crackdown on tax evasion will continue aggressively over the next few weeks, especially now that the country has entered ‘tax season’ — the period when most Kenyans are busy filing their tax returns.
“The Investigations and Enforcement Department of KRA is actively uncovering tax evasion schemes that are being run by dishonest businesspeople.
The aim is to ensure full tax compliance and strict adherence to tax laws and procedures. By doing so, we will promote fair competition in the market, so that all businesses operate on a level playing field,” the statement read.
KRA further urged all taxpayers to fulfill their tax obligations promptly. They warned that failing to do so could lead to strict enforcement actions, including criminal prosecutions, hefty fines, and other legal penalties.
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