Nyeri businessman freed on Ksh.10M bond in Ksh.36M tax fraud case

Nyeri businessman James Mwangi Macharia, a director at Nyika Pharmaceutical Limited, was on Thursday arraigned before the Nyeri Law Courts to answer to tax fraud charges amounting to Ksh.35,996,021.

Mwangi appeared before Principal Magistrate Cheruto Kipkorir, facing the charges alongside his company and fellow director, Emmah Wangari Mutha.

Mutha, however, was absent from court and is currently the subject of an active arrest warrant over similar offences.

The trio is facing four counts of tax evasion, specifically failing to declare their income between 2016 and 2019. During this period, the directors are accused of failing to disclose income totaling Ksh.146,935,360.

Further charges detail that in 2020, the company failed to declare income of Ksh.89,188,317 earned in 2019.

Additionally, they allegedly failed to declare Value Added Tax (VAT) of Ksh.8,620,690 for 2017, Ksh.22,868,319 for 2018, and Ksh.26,258,034 for 2019.

Mwangi denied all the charges and was released on a Ksh.10 million bond, with the matter scheduled for mention on April 29, 2025.

If found guilty, the accused faces a fine not exceeding Ksh.10 million, double the amount of tax evaded—whichever is higher—or imprisonment for a term not exceeding five years, in accordance with the Tax Procedures Act.

The Kenya Revenue Authority (KRA), through its Investigations and Enforcement Department, reiterated its commitment to dismantling tax evasion schemes and ensuring strict adherence to tax laws to promote fair trade and market integrity.