Royal Mabati ltd, Director, two others charged afresh in tax fraud case


Royal Mabati Factory Limited director and two others have been charged afresh with fraud in relation yo tax and tax evasion.

This is after their consolidation of the charge sheets.

Moses Ikinya Kang’arua is charged alongside the company with unlawfully making incorrect statements in Hus income tax return for the year 2016 which act reduced his corporate tax liability by Sh 20,916,653 payable to the commissioner while earning taxable income.

He is alleged to have committed the offence between 1st July and 30th June 2017.

He is also charged with five other counts tax fraud of Sh 172,791,540 for the year 2017, Sh 253,460,464 for the year 2018, another Sh 227 million, Sh 29 million and Sh 151 million.

Ikinya and Royal Mabati are further accuses of under declaring the weight of imports resultingbinba weight variance of 3.879 tonnes thereby evading Sh 96,928,765 tax.

In another count, the two are charged with failure to account for goods deposited in a bonded warehouse.

The are said to have substituted and removed goods to wit 173 rolls of steel coils with a durable value of Sh 25,711,191.

Caleb Opondo Ochieng, the Company’s finance director and Margaret Nyambura Kamau, warehouse officer are charged with aiding Ikinya to evade tax totaling to Sh 253,460,464 for the year 2018-2019.

They denied the charges before trial magistrate Bernard Ochoi.

Their bond terms were maintained but Ikinya requested to substitute his Sh 1 million cash bail with a log book.

KRA prosecutor Peter Mwenda did not oppose the application for substitution.

The case will be heard on 29th October and will be mentioned on 23rd for pre-trial.