Company linked to tycoon Mohammed Jaffer under Sh200m tax evasion probe

A truck is set for loading of gas at African Gas and Oil Company on October 16, 2020.


Photo credit: Laban Walloga | Nation Media Group

What you need to know:

  • Early Friday, detectives from the Kenya Revenue Authority (KRA) raided African Gas and Oil Company in Mombasa and took documents for a probe.
  • Among the documents seized from the company for examination by KRA were bank statements, financial reports, import declarations, stock records and delivery and sales records.

A company associated with Mombasa billionaire Mohammed Jaffer is on the spot for allegedly evading tax payments amounting to Sh200 million.

Early Friday, detectives from the Kenya Revenue Authority (KRA) raided African Gas and Oil Company in Mombasa and took documents for a probe.

The company deals with the importation, repacking, supply and exportation of liquefied petroleum gas (LPG).

John Bisonga, KRA’s acting coordinator for the southern region, said preliminary reports point to instances where the company reduced its tax liability by under-declaring and undervaluing imports.

He said the intelligence reports show the company is involved in underpayment of the corporate tax.

Crucial documents

Mr Bisonga said among the documents seized for examination by KRA were bank statements, financial reports, import declarations, stock records and delivery and sales records.

A majority of the documents were found at the accounts office, where the detectives pitched camp for the better part of the day.

“KRA shall analyse the documents to establish the accurate tax liability and institute relevant recovery measures depending on the findings. If it becomes necessary, we will carry out other sanctions as per the law,” he said.

“We can go as far as when the company started its operations. The investigation has been going on for quite some time now.”