Wilfred Karongo Njoroge, Rosemary Wanjiru Wanjiku and their company charged with 14 counts of tax evasion amounting to Sh140 million when they appeared before Eldoret Senior Resident Magistrate Keyn Odhiambo.
Proprietors of clothing and household wholesale and retailers ‘Wa Morgan,’ popular in Nakuru and Eldoret cities, are facing Sh170 million tax evasion charges in an Eldoret court.
Mr Wilfred Karongo Njoroge and Ms Rosemary Wanjiru Wanjiku of Wa Morgan Wholesaler Limited Company were arraigned in an Eldoret court.
They faced the charges before Senior Resident Magistrate Keyn Odhiambo for failing to remit to Kenya Revenue (KRA) value-added tax amounting to over Sh170m.
They operate the Wa Morgan chain of wholesale and retail outlets spread across Nakuru and Eldoret cities. These outlets are popular for their fair and affordable prices and attract a huge customer base.
The duo were charged on Friday with 14 counts of tax evasion for failing to remit VAT and other taxes to the KRA, a charge they denied.
According to the charge sheet, the accused committed the offences between June 30, 2023, as directors of Wa Morgan Wholesalers Limited company, and being a registered taxpayer under KRA PIN number po52110719G. They are accused of failing to submit income tax returns for the year 2022 with the Commissioner of Domestic Taxes as required under Section 52 b (1) of the Income Tax Act, Cap 470.
They are also accused of generating an income of more than Sh45 million and failing to pay value-added tax amounting to Sh7.2 million to the Commissioner of Domestic Tax for the period 2022 as provided under Section 19(2) of the Value Added Tax Act No.35 of 2013.
The accused faced another count of generating an income of more than Sh183 million and failing to remit Value Added Tax amounting to Sh29.2 million to the Commissioner of Domestic Tax for the period 2023 as provided under Section 19(2) of the Value Added Tax Act No. 35 of 2013.
The accused persons pleaded with the magistrate to release them on lenient bond terms, saying that they were not a flight risk since their place of abode was well known.
Njoroge and Wanjiku also drew the court's attention to the fact that they had already paid Sh1.5 million to the taxman as part of their undertaking to settle the remaining amount owed to the KRA.
"Your Honor, we plead that you free us on reasonable bond terms to enable us to resume our business and negotiate with KRA on repayment of tax owed to them. We fear that our business might collapse in the event we are denied our freedom as enshrined in the Constitution," said Njoroge.
In his ruling on their application to be released on bond, the magistrate directed that they be freed on a Sh10 million bond or cash bail of Sh1 million.
They will appear before the court again for mention of the case next week on April 14 for further directions before the Chief Magistrate’s court.
tominde@ke.nationmedia.com
