I Used Ksh150K to Avoid Taxes, Now I Am Facing a Jail Term

Like many young Kenyans entering the workforce for the first time, I never paid much attention to taxes.

When I landed my first job at 26, I knew my employer was deducting PAYE from my salary, and that was enough for me. Every year, when tax return season came around, I would visit a cyber café near my office and pay Ksh500 to have my returns filed.

For four years, everything seemed fine. Then in 2024, I received an email that completely changed my life.

The email was from KRA, demanding Ksh360,000 in Residential Rental Income Tax. At first, I thought it was a mistake. I did not own rental houses. I did not own land. In fact, I was still paying rent myself.

After logging into my iTax account, I discovered that my PIN had somehow been registered with a residential rental income obligation.

Also Read: My Cousin's Tax Free Empire in Ushago Has Gotten Me Rethinking  My Life Choices 

I immediately returned to the cyber café operator who had been helping me file my returns. He admitted that he may have accidentally put the tax obligation while updating my profile years earlier. 

Unfortunately, he also admitted he had no idea how to remove it from the system. Panic started setting in. The tax demand was more than the Ksh230K I had in my savings.

I shared the issue with colleagues at work, hoping someone had gone through something similar. Most advised me to find a professional tax consultant who could resolve the issue directly with KRA.

A few days later, I found one through a recommendation. The consultant appeared knowledgeable and confident. After reviewing my documents, he assured me the issue was minor and could be fixed quickly.

The catch was his fee. He asked for Ksh50,000 upfront. It felt expensive, but I convinced myself it was better than paying Ksh360,000 for a tax obligation that did not belong to me.

A week later, he called with an update. According to him, he had identified someone within KRA who could help remove the obligation from the system, but the process would require an additional Ksh30,000. Desperate to resolve the matter, I paid.

Also Read: Do You Own Rentals, and You’re Not Paying Tax?

A few days later, another request came. This time, he claimed a supervisor needed facilitation to approve the correction. That cost Ksh50,000.

At this point, I was uncomfortable, but I had already invested so much money that backing out felt impossible. Then came the final request.

He told me the system correction was ready and only required one final approval. That approval would cost Ksh20,000.

By the time I sent the money, I had spent Ksh150,000 trying to remove a tax obligation that should never have existed in the first place.

Also Read: How to File KRA Tax Returns on eCitizen & iTax Portal

The problem was that nothing changed. I was told it would take a few working days before the obligation changes reflect on my profile.

Whenever I asked for updates, I was given excuses and promises.

Then one morning, everything fell apart. I received another email from KRA. This time, it was not a tax demand. It was an email from the Intelligence and Enforcement Department.

According to the notice, my PIN had been flagged as part of investigations involving illegal system manipulation and attempted tax fraud.

Suddenly, I was no longer dealing with a tax error. I was being treated as a possible accomplice.

Today, I am working with a lawyer to clear my name.