Kisumu businessman in court over Ksh.51 million tax evasion

Businessman Noor Hassan Abdullahi was on Monday arraigned at the Kisumu Law Courts to face charges of tax evasion amounting to Ksh.51,255,512.

Appearing before Chief Magistrate Dickson Onyango, Abdullahi was accused of failing to declare income derived from his business dealings in cooking oil, flour, and sugar sales between 2018 and 2022.

According to the Kenya Revenue Authority (KRA), Abdullahi earned Ksh.735,164,836 over the four-year period but did not report it for taxation purposes.

Additionally, authorities allege that despite trading in vatable goods, Abdullahi failed to register for Value Added Tax (VAT) as required under the Value Added Tax Act No. 35 of 2013.

The accused denied all charges and was granted a bond of Kshs.1 million.

If convicted, he faces a fine not exceeding Kshs.10 million or twice the amount of tax evaded—whichever is higher—or a prison sentence of up to five years, in accordance with the Tax Procedures Act.

The case is set to proceed in court as investigations continue.