Morara Kebaso, an activist and emerging politician, has condemned ongoing investigations into his alleged tax evasion, claiming they are part of a political witch-hunt.
In a statement on Thursday, January 9, Kebaso voiced frustration over the public nature of the investigation, emphasizing his willingness to meet his tax obligations. He stated, “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.”
Kebaso accused state agencies of 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,” he added.
Despite the investigation, the businessman and politician vowed to remain resolute. “Kenyans are very wise; they can distinguish between a genuine tax investigation and a political witch hunt. I will continue to speak truth to power without fear,” he concluded.
The Kenya Revenue Authority (KRA) is looking into Kebaso for alleged tax evasion, tied to Ksh 186 million in income earned over the past three years.
Kebaso’s businesses, which include Igrow Digital Enterprise, Morara Home Furniture, Luku Fashion, Morara Properties Limited (also known as Blacksmith Morara Limited), and Backtent Security Limited, are accused of declaring nil income or failing to file tax returns, despite evidence of significant financial activity.
For the record i do not own Igrow Digital Enterprise. It is a youth group that we registered as schoolmates in 2014 when we were in the university. The intention of the youth group was to do the business of breeding dogs i.e german shepherd, Springer Spaniel, Japanese Spitz. We…
— Morara Kebaso (@MoraraKebasoSnr) January 9, 2025
KRA’s scrutiny of bank accounts linked to these businesses revealed significant deposits, primarily from M-Pesa paybill services, contradicting the reported lack of income. Over three years, these deposits totaled Ksh 186.3 million, with nearly 80% of that amount coming from Morara Home Furniture.
The taxman has argued that Kebaso’s businesses should have been registered for Value Added Tax (VAT), as their turnover surpassed the Ksh 5 million annual registration threshold. 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 also referred records from the National Transport and Safety Authority (NTSA), which indicate that Kebaso owns six vehicles. These include a Renault Van, Land Cruiser Pickup, Land Cruiser Prado, Volkswagen Passat, Captain Tuk Tuk, and TVS Motorcycle.
KRA stated that these assets contradict Kebaso’s claims of nil income, noting that the vehicles were acquired despite his declaration of no income or failure to file returns.
The Authority 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.
The activist has expressed his willingness to honor the summons with a view to resolving the alleged tax dispute.
I am willing and ready to sit down with KRA and understand how we disagreed on mathematics and why it was necessary to investigate me in the media without a chance to defend myself. I have been condemned without a fair hearing. pic.twitter.com/4bk6oSQLAs
— Morara Kebaso (@MoraraKebasoSnr) January 9, 2025