Investigations into Kenya Revenue Authority (KRA) manager Joseph Chege Gikonyo have revealed that the bureaucrat’s Sh597 million portfolio may have been built on bribes paid by clearing and forwarding firms at the Mombasa port in return for releasing cargo or lowering their tax liabilities.
Yesterday, Mr Gikonyo, his wife Lucy Kangai Stephen and their company Giche Limited denied charges of tax evasion before chief magistrate Lawrence Mugambi.
Mr Mugambi granted the couple Sh5 million bail each, with an alternative of Sh10 million bond each.
In his ruling the court released the two accused on a cash bail of Sh5 million saying the amount is commensurate to the amount claimed in tax.
"The amounts involved are huge and bail must be commensurate with the claim involved so that the public can have confidence with the administration of justice," Mr Mugambi ruled while granting bond.
DAY JOB
The couple and their firm, Giche Limited, have been accused of evading Sh38.6 million in taxes, which accrued from wealth made between 2010 and 2015.
Mr Gikonyo’s day job involved valuations and document processing for goods imported through the Mombasa port.
Importers usually hire clearing and forwarding firms to pay and obtain document clearance from the KRA.
In netting Mr Gikonyo, Ethics and Anti-Corruption Commission (EACC) detectives traced 20 clearing and forwarding agents who said that paying the KRA bureaucrat to release their cargo had become a normal occurrence.
The 20 clearing and forwarding agents tracked down by detectives admitted to paying Mr Gikonyo Sh258.4 million to have their goods released.Investigations corroborated the claims, as they indicated that Mr Gikonyo received Sh43.9 million through mobile money transfer and Sh214.4 million in cash.Mr Gikonyo’s wife, Lucy Kangai Stephen, is now entangled in the saga as detectives say she benefitted from the ill-gotten wealth.Ms Stephen is also a co-director of Giche Limited, an investment company Mr Gikonyo incorporated to expand his investment portfolio.IMMENSE WEALTHGiche Investments is currently worth at least Sh597 million, having acquired properties in Nairobi, Kilifi and Mombasa Counties.The EACC in 2018 filed a recovery suit against Mr Gikonyo, Ms Stephen and Giche Limited following two years of investigations.On Monday, Director of Public Prosecutions Noordin Haji approved the EACC’s request to press tax evasion charges against the trio.The recovery suit has revealed that Mr Gikonyo has at least 10 houses and apartment blocks spread across Nairobi, Mombasa and Kilifi.Mr Gikonyo also has stocks in Equity Bank, Safaricom and KenGen. He has policies with Madison […]