Political activist and Chairman of the Morara Group of Companies, Morara Kebaso, has responded to reports of a tax investigation by the Kenya Revenue Authority (KRA).
In a statement posted on social media, Kebaso expressed frustration over the public nature of the investigation, labeling it as an attempt to silence his vocal criticism of corruption and mismanagement in Kenya.
“Tax matters are private and confidential. I don’t understand why mine is being investigated in the media,” Kebaso wrote.
He reiterated his commitment to abiding by the law, stating, “I have always been ready and willing to lawfully pay all taxes.”
Kebaso further claimed that the investigation is politically motivated, referring to it as a “weaponized” attack aimed at suppressing his advocacy for accountability and transparency. “This is a clear attempt to force me into collusion with corrupt leaders and the mismanagement of our country,” he said.
Despite the probe, Kebaso assured his supporters that he remains steadfast in his resolve. “Kenyans are very wise. They can tell the difference between a genuine tax investigation and a political witchhunt. I will continue to speak truth to power without fear,” he declared.
Clarification on Igrow Digital Enterprise
In a separate post, Kebaso addressed claims linking him to Igrow Digital Enterprise, a company reportedly under KRA’s scrutiny. He clarified that he does not own the business, providing background on its creation.
“For the record, I do not own Igrow Digital Enterprise. It was a youth group we registered in 2014 as university schoolmates,” he explained.
The group aimed to establish a dog-breeding business, focusing on breeds like German Shepherds, Springer Spaniels, and Japanese Spitzes. However, Kebaso noted that the venture never took off due to a lack of capital.
“We hoped to secure funding from the Youth Enterprise Fund, but that never materialized,” he added.
Details of the Tax Claims
KRA alleges that Kebaso’s businesses have failed to file tax returns for Sh186 million in sales over the past three years. The authority has specifically named five companies linked to him: Igrow Digital Enterprise, Morara Home Furniture, Luku Fashion, Morara Properties Limited, and Backtent Security Limited. These businesses are accused of either declaring no income or failing to file returns, despite owning valuable assets.
As part of the investigation, KRA has scrutinized three of Kebaso’s bank accounts, which have received substantial deposits, mainly via M-Pesa. Notably, Morara Home Furniture received Sh146.9 million, nearly 80% of the total deposits across the accounts. KRA has pointed out that these deposits suggest undeclared income and a failure to register for VAT as required by law.
Kebaso, however, denies any wrongdoing, asserting that he is a law-abiding citizen and that the allegations are politically motivated. He has presented certificates of tax compliance for the years 2022 and 2023 to defend his position.
Despite this, KRA maintains that his businesses owe Sh27 million in taxes, including Sh25.7 million in VAT and Sh1.37 million in income tax. KRA has also discovered that Kebaso owns several vehicles, including four cars, a motorcycle, and a tuk-tuk, which he allegedly failed to report in his tax filings.
In light of these findings, the tax authority has summoned Kebaso to appear at its Nairobi offices on January 13, 2024, to provide further documentation related to his businesses’ financial records.
