KRA says Governor Johos businesses closed over tax evasion

The Kenya Revenue Authority Commissioner General John Njiraini has defended action by the customs department to suspend operating licenses of two container freight services associated with Mombasa Governor Ali Hassan Joho.

Njiraini says the action that has been met with acrimony from the Coalition for Reforms and Democracy (CORD) politicians is part of streamlining operation on the CFSS to ensure compliance with new guidelines.

The action by KRA has been received with suspicion from the political class especially from the opposition with its leader Raila Odinga terming the move as oppressive and aimed at taking the country back to the old days.

Odinga said the action was nothing but political frustration by the government.

Autoport and Portside Container Freight Stations are associated with Governor Joho and were shut down on Thursday by officials from KRA and the Kenya Ports Authority (KPA) over claims the facilities were conduits for illegal consignments.

The Commissioner General in a statement to newsrooms says that shut down CFSS are suspected of facilitating the importation of contraband goods including sugar, rice, ethanol and other highly sought after commodities.

This Njiraini says undermines the tax collection efforts of the authority while also frustrating national development objectives aimed at promoting Kenyan enterprise.

Coast opposition leaders on Friday demanded for the immediate re-opening of the firms, failure to which they will hold demonstrations.

KRA has, however, vowed to continue tightening the noose around firms involved in illegal activities including engaging in transit diversion, smuggling and other fraudulent practices as it seeks to seal revenue leakages.