A Chinese national has been jailed for four years with an option of Ksh6 million fine for failing to declare income tax and value-added tax (VAT).
In a statement on Friday, January 24, 2025, the Kenya Revenue Authority (KRA) revealed that the trader, Cai Ronggui, was found guilty of four counts of tax fraud totalling Ksh74.6 million.
“Cai Ronggui, a Chinese national and beneficial owner of Yiyuan Trading Company Limited, has been sentenced to four years in jail or pay a fine of KShs.6 million after Milimani Court Magistrate Hon. Bernard Ochoi found him guilty on four counts of tax fraud totalling KShs. 74,627,410,” KRA stated.
The case has been going on since December 2021 after he failed to declare both income tax and Value Added Tax (VAT) for 2018 and 2019.
The taxman says that after the trader denied the charges, he has been out on bail throughout the trial.
“The charges, which were filed in court in December 2021, stemmed from his failure to declare both income tax and Value Added Tax (VAT) for 2018 and 2019. Ronggui, who denied the charges, had been out on bail throughout the trial,” the taxman added.
KRA revelations
According to KRA, Ronggui’s company, Yiyuan Trading Company Limited, was actively generating income in 2018 and 2019, earning a total of Ksh162,233,500 but failed to declare the income.
“The court heard that Yiyuan Trading Company Limited was actively generating income during 2018 and 2019, earning a total of KShs. 162,233,500. However, Ronggui unlawfully and deliberately failed to declare this income to the Kenya Revenue Authority (KRA), thereby evading taxes,” KRA stated.
“For 2018, the company earned Ksh60,453,000, but failed to declare this, resulting in a tax liability of Ksh18,135,900. For 2019, earnings amounted to Ksh101,780,500, with an income tax liability of Ksh30,534,150 going unpaid. For the same years, the company failed to declare VAT, resulting in additional tax liabilities of Ksh9,672,480 (2018) and Ksh16,284,880 (2019).”
KRA says the sentencing is expected to set a strong precedent for similar offences.
