Morara Kebaso Responds After KRA Targets Him Over Ksh186M Tax Evasion
The Authority had reportedly stated that the vocal activist has been declaring nil income.
Viral Tea Ke Writer 
Political activist Morara Kebaso has reportedly refuted allegations by the Kenya Revenue Authority (KRA) after the taxman launched investigations over his alleged failure to file tax returns on Ksh186 million made in sales by his businesses over the last three years.
The Authority had reportedly stated that the vocal activist has been declaring nil income. In a notice sent to Kebaso, the taxman has listed five companies: Igrow Digital Enterprise, Morara Home Furniture, Luku Fashion, Morara Properties Limited (Blacksmith Morara Limited) and Backtent Security Limited.
As first reported by the Nation, the Authority claimed that the businesses “have been declaring nil income or not filing returns despite the fact of ownership of properties, business undertakings and other assets”.
KRA also listed three bank accounts belonging to Morara Properties Limited, Morara Home Furniture and Kebaso himself, saying they have been receiving money over the last three years. The first two are in the real estate and furniture selling sectors respectively with deposits to the accounts mostly coming from a mobile money paybill.
An image of KRA offices. /FILE
The third account, registered under him, receives money through mobile means mostly as payments for furniture and interior fittings, according to KRA.
However, Kebaso dismissed KRA's allegations, stressing that he's a patriotic citizen who abides by the laws of the country. He also evidenced certificates of tax compliance issued to him by the same Authority for the years 2022 and 2023.
“This is nothing but a political witch-hunt. I have followed the law to the letter and I am a very tax-compliant businessman. I can never think of defrauding my beloved country in any way,” he was quoted by the Nation.
The publication had reported that in KRA's analysis of the three bank accounts, the taxman indicated that they received trade credits of Ksh9.5 million in the year 2022, another Ksh31.9 million in 2023 and Ksh144.9 million in 2024 — bringing in a total of Ksh186.3 million over the last three years.
Of the three accounts, Morara Home Furniture, with a total of Ksh146.9 million, received almost 80 per cent of the entire deposits made to the three entities.“The trade credits were compared with income tax turnover declared in the income tax returns, to which it was noted that you are a non-filer, to determine undeclared income turnover. It was noted that you are not registered for Value Added Tax (VAT),” KRA informed the activist.
With Kebaso’s businesses having bank deposits above the threshold of Ksh5 million, the taxman revealed that he would be "forcefully registered by the Commissioner as provided for in Section 34 of the VAT Act", going on to note through its calculation that Kebaso’s businesses have VAT due of Ksh25.7 million.
Further, the taxman stated that a margin of 12 per cent is usually calculated in businesses dealing in home furniture based on declarations of taxpayers. As such, KRA reckoned Kebaso’s businesses accrued a total of Ksh252,091 and Ksh1.1 million in the years 2022 and 2023 respectively, totalling Ksh1.4 million in income tax.
The 12 per cent was however not calculated for the year 2024 which brought in Ksh144.8 million with KRA noting that the income tax for the year is not yet due. In total, KRA revealed that Morara owed taxpayers Ksh27 million coming from the Ksh25.7 million of VAT due plus the Ksh1.37 million coming from the income tax.
KRA had also reportedly listed records from the National Transport and Safety Authority (NTSA) indicating that Kebaso has four cars, a tuk-tuk and a motorcycle. “These assets are owned despite a declaration of nil or non-filing of income,” KRA said.
The taxman summoned him to visit its offices in Nairobi for an interview on January 13, 2024, requesting him to avail examination copies of the entities' records, books of accounts and any other documents including copies 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.
Morara has not publicly commented on the matter by the time of publishing this story.
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