Warrant of arrests have been issued against three directors of Liban Trading Limited over Ksh 740 million undeclared income the firm realised over a three year period. The company, Liban Trading Limited declared nil incomes in its tax returns despite being in receipt of income totalling Ksh 740,129,552 earned over a period of three years with a revenue loss of Ksh 200 million.
The directors, Abdisalam Abdulahi Gedi, Yahye Elias Bare and Mohamed Hassan Ali were not present when Mombasa Resident Magistrate Hon. Gladys Ollimo issued warrants for their arrest following the prosecution’s application. The three are jointly charged with three counts of making incorrect statements affecting tax liability contrary to sections 97 and 104 of the Tax Procedures Act.
The case will be mentioned on 18th November,2025. If found guilty, the accused persons may be liable to a fine of Ksh 10,000,000 each or double the taxes evaded, whichever is higher or imprisonment to a term not exceeding 5 years as provided for by the Tax Procedures Act, 2015.
In the same court, Charles Migiro Onderi denied being found in possession of Vodka alcoholic beverages packed in 34 cartons affixed with counterfeit excise stamps. He was charged with the offence of being in possession of excisable goods affixed with counterfeit stamps contrary to sections 28 of the Excise Duty Act,2015. He denied the charge and was granted Ksh 50,000 cash bail.
Meanwhile, KRA has deployed resources to deter, disrupt and deter tax evasion perpetrated through concealment of income and other schemes designed to evade payment of taxes. It has also enhanced surveillance across all the borders and major roads to detect and apprehended persons found smuggling goods across the borders and those aiding and abetting tax evasion across all border points.
Taxpayers are encouraged to ensure compliance with their tax obligations through making correct income declarations and paying the requisite taxes to avoid punitive enforcement measures including prosecution.
Business persons especially transporters are encouraged to ensure due diligence when conveying goods to ensure they have full particulars of the goods and owner of the consignment they are transporting.
This will help them avoid enforcement such as seizure of the truck and prosecution for tax evasion. The general public is also urged to report any instances of tax evasion in order to ensure every person pays his fair share of taxes. All information received shall be kept confidential and the identity of the informant kept 100% anonymous.
> Directors Face Arrest Over Ksh740 Million Undeclared Income
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