Taxman to deregister 121 vehicles in evasion crackdown

Kenya Revenue Authority officials inspect some of the high-end cars that were presented at Kenya Railways Club grounds on May 17, 2016. The motor vehicle syndicate capable of altering records at the registrar’s office is said to be motivated by tax evasion and the smuggling of vehicles that are older that the eight-year limit. PHOTO | SALATON NJAU | NATION MEDIA GROUP

What you need to know:

  • The list of 124 vehicles suspected to have evaded duty of close to half a billion shillings was made public following investigations that found massive irregularities in motor vehicle registration.
  • KRA had given the owners 14 days to present them for clearance after it emerged that they had been registered improperly.

The Kenya Revenue Authority is set to deregister 121 vehicles after owners failed to respond to a notice issued three weeks ago asking them to present the cars to KRA for clearance.

The list of 124 vehicles suspected to have evaded duty of close to half a billion shillings was made public following investigations that found massive irregularities in motor vehicle registration.

The KRA acting commissioner in charge of investigations and enforcement, Mr David Yego, said only 12 vehicles were presented since the notice was given.

“... and only three have been cleared as having no further issues. The process of withdrawal of registration for the vehicles is currently under way. Those who have not presented the vehicles continue to violate the law and may be charged for being in possession of uncustomed goods among other violations,” he said.

KRA had given the owners 14 days to present them for clearance after it emerged that they had been registered improperly.

Some of the vehicles, which included Water and Irrigation Cabinet Secretary Eugene Wamalwa’s Range Rover (registered as an Isuzu truck) have been held at KRA’s railways yard in Nairobi since last month.

Mr Wamalwa’s personal assistant, Mr Kizito Temba told the Daily Nation that the problem was within KRA, having been able to transfer the log book to his boss without raising the custom queries they have raised to detain the former Saboti MP’s car.

The motor vehicle syndicate capable of altering records at the registrar’s office is said to be motivated by tax evasion and the smuggling of vehicles that are older that the eight-year limit.

KRA said it had launched investigations to find out whether its employees were involved in the dirty trade that had bled the taxman billions in revenue from imported cars.

The vehicles are mostly those stolen overseas while others pass the port as transit cargo destined for Uganda or South Sudan, hence evading duty.

The cargo is then diverted mid-way and a fake number plate or one from an accident vehicle.

That the 121 cars fully identified by KRA with chassis numbers, registration numbers and owners laid bare failed to be presented to the tax man and none has been impounded, depicts the overwhelming situation at government enforcement arms.