Kisumu: A Kisumu-based businessman has been charged with 15 counts of tax fraud amounting to more than Sh20 million in what the Kenya Revenue Authority (KRA) describes as a deliberate scheme to evade taxes while doing business with county governments. Erastus Leo Wasike, trading as Emico Mechanical Consultants, was arraigned before Principal Magistrate Fatuma Rashid on Thursday and charged with failure to declare income, refusal to pay taxes, and submitting false tax returns contrary to the Tax Procedures Act.
According to Kenya News Agency, the prosecution told the court that between 2019 and 2023, the businessman generated millions of shillings in revenue but failed to pay income tax totaling Sh8,002,520. Audit investigations also established that the accused omitted sales figures in his Value Added Tax (VAT) declarations, leading to a VAT loss of Sh12,602,892 over the same period.
Wasike denied all the charges and was released on a bond of Sh2 million or an alternative cash bail of Sh1 million. The matter will be mentioned on November 20, 2025. If found guilty, he faces a fine of up to Sh10 million or double the taxes evaded-whichever is higher-or imprisonment for a term exceeding five years as provided for under the law.
The case is part of a wider crackdown by KRA targeting tax evasion schemes believed to be orchestrated by businesses operating across the counties.