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Khalif Kairo has responded after KRA commenced investigations into his car dealership business

Khalif Kairo speaks as KRA goes after his car dealership business | Pulselive Kenya

Denis Mwangi

Khalif Kairo, the CEO of Kai &amp; Karo Limited, has accused a former business partner of conspiring with officials from the Kenya Revenue Authority (KRA) to harass and frustrate his business operations.

Kairo has claimed that the individual had conspired with KRA officials to investigate his company and has gone so far as to issue threats against him online.

The dispute revolves around a notice from KRA’s Investigations and Enforcement Department, summoning Kai &amp; Karo Limited to appear for a meeting on September 26, 2024 in Nyeri.

"Please be notified that the Commissioner has commenced investigations of your tax affairs for the period commencing January 2018 to Date. Pursuant to the provisions of section 59 (1) (C) of the Tax Procedures Act, you are hereby required to appear before the commissioner for a meeting at our offices," read an excerpt of the KRA document seen by Pulse Kenya

The investigation requires the company to provide detailed financial documents, including;

<ol><li>Audited financial statements and trial balances</li><li>Sales ledger and sales invoices</li><li>Purchases ledger and purchases invoices</li><li>General ledger</li><li>Stock valuation records</li><li>Wear and tear and asset schedules</li><li>Bank statements for the company and directors.</li></ol>

Kairo, however, insists that his taxes are in order and has been compliant with the law during his nine years of running the business.

“An old partner of mine is using KRA officials in Nyeri to frustrate me. He has bribed them huge amounts of cash and has gone ahead to threaten me on this app. Guy also happens to be facing quite a number of criminal cases where I am a witness.”

Adding to the complexity of the situation, Kairo disclosed that he is embroiled in a legal battle where his former business associate is allegedly suing him for over Sh30 million.

The CEO claims the partner previously sought court orders to shut down Kai &amp; Karo, but these requests were dismissed by the courts.

READ: <a href="https://www.pulselive.co.ke/business/domestic/kra-proposes-new-car-valuation-method-heres-the-impact-on-motorists-and-importers/xb6lby6">KRA proposes new car valuation method, here's the impact on motorists &amp; importers</a>

“I have a pending case somewhere sued for over Sh30 million and at one point, dude sought orders to shut down Kai &amp; Karo but courts declined. I know what am saying,” he tweeted.

The accusations come at a time when <a data-link-role-code="open_new_tab" href="https://www.pulselive.co.ke/news/local/kra-collections-hit-sh1499-trillion-on-improved-tax-mobilisation/kd9zeds">KRA is ramping up its investigations into businesses</a> suspected of tax evasion.

While Kairo has maintained his innocence and commitment to tax compliance, he remains adamant that the recent developments are fueled by personal vendettas rather than legitimate tax concerns.

Meanwhile, KRA has not responded to the allegations of bribery and manipulation.

The taxman's notice explicitly states that Kai &amp; Karo must produce financial records within seven days and attend a meeting with KRA officials to address the tax investigation.

Kairo’s supporters on social media have echoed the need for transparency, with one commenter advising him to conduct a “thorough audit” of his company’s records before escalating the situation further.

However, the businessman reiterated that all his business dealings and accounts are above board and that is why he is not scared of the summons.

He said that he will only respond to communication from KRA's Nairobi office because he doesn't understand why he would be summoned to the Nyeri office yet his tax account is not in that county.

READ: <a href="https://www.pulselive.co.ke/entertainment/celebrities/khalif-kairos-biography-age-schools-attended-early-parenthood-and-life-regrets/gq62r88">Khalif Kairo's Biography: Age, early parenthood &amp; life regrets</a>

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Khalif Kairo speaks as KRA goes after his car dealership business

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