Activist Morara Kebaso has addressed recent reports that the Kenya Revenue Authority (KRA) is investigating him over Ksh 27 million in unpaid taxes.
In his statement on Thursday, January 9, Kebaso expressed dismay over the public nature of the investigation, also affirming his commitment to fulfilling his tax obligations.
"Tax matters are private and confidential. I don’t know why mine is being investigated in the media. I have always been ready and willing to lawfully pay all taxes," he wrote on X.
Kebaso termed the move as a political witch hunt, alleging that state agencies were being used to suppress dissenting voices.
"State agencies should not be weaponized to silence voices of truth and accountability. This is a clear attempt to push me to my knees so that I agree to collaborate with corrupt leaders in the mismanagement of our country.
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"Kenyans are very wise; they can differentiate a genuine tax investigation and a political witch hunt. I will continue to speak truth to power without fear," he concluded.
On Wednesday, January 8, media reports showed that KRA is investigating Kebaso for alleged tax evasion involving Ksh186 million in income over the past three years.
Kebaso's businesses, Igrow Digital Enterprise, Morara Home Furniture, Luku Fashion, Morara Properties Limited (also known as Blacksmith Morara Limited), and Backtent Security Limited, are accused of either declaring nil income or failing to file tax returns, despite evidence of substantial financial activity.
KRA's analysis of bank accounts linked to these businesses revealed significant deposits, primarily from M-Pesa paybill services, contradicting the reported lack of income.
The deposits totaled approximately Ksh 186.3 million over three years, with Morara Home Furniture accounting for nearly 80% of this amount.
The authority contends that Kebaso's businesses should have been registered for Value Added Tax (VAT), as their turnover exceeded the mandatory registration threshold of Ksh 5 million annually.
KRA estimates that Kebaso owes Ksh 25.7 million in VAT and Ksh 1.4 million in income tax, totaling Ksh 27 million in unpaid taxes.
KRA has summoned Kebaso to its Nairobi offices on Monday, January 13.
"You are hereby requested to avail examination copies of the entities' records, books of accounts, and any other documents including copy of the general ledger, asset register, invoices, purchases and sales ledgers, payroll records, directors' accounts, debtors, and creditors ledger, bank statements for both companies and the directors," KRA said in a notice to Kebaso.