Category: News

By Mark Karisa

City Lawyer Tom Ojienda is putting up a fight to block Kenya Revenue Authority from recovering Sh443 million in alleged tax arrears.

On October 5, Ojiambo obtained temporary orders barring KRA from taking any action against him until a suit he filed is concluded. Ojienda has accused the taxman of unfairness.

KRA, in a letter dated June 7, demanded payment of Sh443,631,900 from Ojienda as total tax due to it for 2009-16. But the lawyer says the claim is illegal, and he should not be made to pay. In court documents, Ojienda says KRA has summed with all the money he has received since 2009, including unpaid bills, his clients’ money, proceeds from personal accounts to which he was paid salaries and other allowances, and treated it as his net taxable income.

He accuses the taxman of unlawfully subjecting his four bank accounts, three held at Barclays and one at Standard Chartered Bank to taxation, which, he says, is in violation of his fundamental rights. Stating that he receives and keep clients’ money as a statutory obligation and that money cannot be subjected to taxation as the taxman wanted.

He said it is unfair and unreasonable for KRA to seek claims on sums banked at his personal account. Ojienda says it is unfair that he is required to provide communication and documents between him and his clients, which were covered by advocate-client privilege.

He says it was wrong for KRA to issue an amended assessment dated September 5, purporting to assess a total of Sh378 million as tax dues and payable for 2011-16, without giving him a chance to be heard.

The battle has been marred with tribal bias class between Ojienda and James Mburu, a deputy commissioner of KRA who swore an affidavit against him. Ojienda claims the pursuit is dishonest and full of malice. Mburu in his affidavit says a payroll that Ojienda never deducted and remitted his employees’ income tax as required by law.

Dr. Robert Ayisi, the Nairobi County Secretary, who claims to have been frog-marched by KRA officers. Ayisi was arrested allegedly for declining to reveal crucial information to KRA on the payments made by the county to Ojienda and his law firm. He has since sued for harassment and humiliation, following his arrest and brief detention at the Times Tower.

The matter if tax fraud has hit several media publications even though the case is yet to be determined by the courts, KRA seems to have won the public court with sympathy seeking innuendos. While tax evasion is a severe economic crime, the judicial procedures must be respected and trusted in carrying out their mandate and give the breakthrough in this standoff between the law professor and the taxman before the public lynching. The imminent violation of individual space in the name of sniffing by the taxman shouldn’t be excused either but instead should adhere to the set ethical standards.

The case between Ojienda and KRA is still before the court shouldn’t be discussed in details to the media as it could incite unreal opinion and perception. Respecting the judicial components in serving fair judgement should not be tampered with. KRA need to through legal in addressing this stand off and do so by respecting the law.

It comes as good news that the Nairobi County has been stopped from selling the Sh500 million Eastleigh Public Market to the Alfa Traders who have been putting up a mall despite several court orders that they disregarded.

The Environment and Lands Courts division judge, Mr. Justice Samson Okong’o, who stopped the sale heard that the livelihood of over 400 traders is at risk.

The judge temporarily stopped the transferring of the market land to two businessmen Mr. Farah Mohammed Barrow and Mr. Ali Sheikh Mohamud trading as Alfa Traders or third parties.

Justice Okong’o barred the Nairobi County Government and Alfa Traders from transferring, selling, charging, leasing, dealing, removing from, excavating, damaging or developing the property on which the market is built.

On realizing loopholes and uncertainty on their land lease which the Ombudsman investigations determined to have been irregularly acquired and the NLC revoked, the Alfa Traders hatched a secret plot to sell units to third parties as a security measure. The alleged lease was canceled in 2009.

The court is being asked to “declare it as public land.” Meanwhile, the recently released Ombudsman report said the land a public utility as it has been listed since time. Kenya Insights for those who’ve been following updates have closed head and in this case that broadcasted absolute impunity with complete disregard to law.

Endless court orders and NLC blanket cessation orders have all been ignored, and the dubious developers went ahead with construction under police surveillance. The hawkers can only wish the court won’t relent and loosen the knot. Cases of public land grabbing have been on the rise in Eastleigh with wealthy businessmen taking advantage of the corrupt systems in the County Government and NLC to grab few remaining public spaces. We will be following keenly to see how things turn out to be. Next hearing is December 19, 2016.

It turns out the Sh.1.6B being floated as the amount lost in the NYS heist is just but assumed amount and the real figure stolen could be in more billions. This follows fresh revelations by PAC that more than 70% of Kenyan banks handled the NYS loot with up to 30 banks named contradicting the initial 18 number reported.
Members of the House team said they received information from the Devolution ministry that the banks have handled the cash since 2013.

PAC said it needs to question the companies and banks to establish if any impropriety was committed in their transactions.

The additional banks named Tuesday are:

• Equity Bank
• Diamond Trust Bank
• Cooperative Bank
• Consolidated Bank
• First Community Bank
• Bank of Baroda
• African Banking Corporation
• I&M Bank
• Paramount Bank
• Chase Bank
• Bank of Africa
• Transnational Bank
• Housing Finance
• Giro Bank
• Gulf African Bank
• Commercial Bank of Africa
• Ecobank
• Fidelity Bank
• CFC Stanbic.

Initially, the banks named included;

• Standard Chartered
• Sidian Bank
• Guaranty Trust Bank
• Barclays Bank
• Kenya Commercial Bank
• National Bank of Kenya
• NIC
• Jamii Bora
• Old Mutual
• Faulu
• Family Bank.

Family Bank has been named as the primary recipient of the mega loot which was then transferred to individual accounts in other commercial banks. They were fined 1M alongside other two banks for failing to report the suspicious bulk transactions. Central Bank in latest update has given the go-ahead to the DCI and ODPP to institute investigations on the then CEO Munyiri over criminal involvement in the looting.

Banks as a regulation, are required to report to the Financial Reporting Centre (FRC) on transactions above 1M as a measure to curb money laundering. Most of the banks that handled the NYS money failed to report ending up aiding the robbery. As a measure of consumer confidence at a time when rogue bankers are putting consumers holding their hearts by the sleeves, action must be taken especially criminal charges on banks that permit illegal transactions as of this magnitude.

The Ombudsman has recommended to the Devolution Cabinet Secretary and Head of Public Service to remove from office the Executive Director of the NGOs Coordination Board Mr. Yusuf Mahamed Fazul. An investigation by the Commission on Administrative Justice has found Fazul unsuitable to hold public office for abuse of power and misconduct. The Ombudsman has further established that Fazul was irregularly appointed as he did not have the requisite qualifications.

CAJ embarked on investigations following complaints that the CEO was underqualified and engaged in gross misconduct of office including misuse of funds, unprocedural procurement processes, irregular appointments and transfer of staff, threatening staff members who raised a finger on his qualifications.

CAJ determined that his 2014 appointment to the post was irregularly made since he didn’t hold a degree. Fazul was discontinued from the Egerton Uni for failure to satisfy the academic standards of the course he was pursuing, Bachelor of Science in biochemistry.

During his interview, Fazul presented forged papers indicating he had a degree from the sane college he was discontinued from. In an attempt to cover up, Fazul withdrew his personal file from the custodian (Human Resources Manager) and removed his records.

The investigations have also determined, Fazul operated with absolute impunity and uncontrollable misuse of funds on unapproved foreign trips, irregular promotions, and transfers of staff. As an authoritarian, he’s been a horror to the employees who ever questions his decisions and most have been pushed to resignation out of frustration.

The Ombudsman has recommended for the CS to fire Fazul over gross misconduct and abuse of office immediately. He’s currently on suspension given to him by Kiunjuri. In respect to irregular promotions, he promoted an officer who was hired as an executive secretary in 2009 through various ranks, some of which do not exist in the organization’s organogram,” it says.

“The said officer now holds the position of guidance and operations manager and acting deputy executive director,” the report explains. CAJ is also praying for the DCI to institute investigations against Fazul over forgery of documents.

Ombudsman also wants Fazul to return to state amount totaling to 8.5M that he has unlawfully earned as net salary in his tenure.

Married men may be in for a rough stretch unless they accord political support to the incumbent, President Uhuru, and female candidates. This comes after Ruiru MP Esther Gathogo told wives to deny their spouse’s conjugal rights if they do not support Jubilee and women in the 2017 election her sentiments echoed by Nairobi woman rep, Rachel Shebesh.

Addressing a meeting in Thika, the legislator said women should use sex as a weapon to coerce men to vote for Uhuru and female candidates in various positions during the 2017 polls. “This time we should be bold and tell our men enough is enough. If they refuse to support Uhuru and women leadership then deny them sexual favors,” she said amid cheers from hundreds of women attending the meeting at CCM Makongeni Church hall.

The event, organized by a caucus of Jubilee female legislators dubbed ‘Women for Women’, was to drum up support for Thika Town MP Alice Ng’ang’a. It was attended by at least 16 MPs led by Deputy Leader of Majority in the National Assembly Naomi Shaaban and Nairobi Women’s Representative Rachel Shebesh.

It’s rather unfortunate that in this age and era sex is still being used as a manipulation tool and coming from rather privileged legislators we’re left with stretched jaws.

The moment the news hit the airwaves that unsuccessful terror attack was attempted at the Nairobi’s U.S. Embassy, knew there was A subliminal message being sent by A terror group. True to the word, it has emerged the killed terrorist was a follower of Islamic State responsible for an attack last week on a Kenyan police officer outside a U.S. embassy in Nairobi, the group’s Amaq news agency said on Saturday.

The knife-wielding man whom police described as a criminal was shot dead outside the U.S. Embassy in Nairobi last Thursday after he attacked and injured a Kenyan police officer.

“The person who carried out the stabbing of a guard outside the American embassy in Nairobi last Thursday was a soldier of Islamic State responding to calls to target coalition countries,” Amaq said.

Islamic State previously claimed an attack in Kenya in September by three women who were shot dead after they tricked their way into a police station in Mombasa and tried to torch the building, according to police. The police in Kenya have also previously said they had detained sympathizers with the group.

But experts say it is not clear how close the connection is between groups and individuals proclaiming allegiance to the Islamist group and the Islamic State organization in its Middle East heartland of Syria and Iraq, where it is increasing pressure from regional and international forces.

The ISIS has been on a recruitment overdrive worldwide with intentions of spreading their wings beyond the Middle East that has been their root. ISIS is one of the most brutal and senseless terror groups in history, so gruesome that world’s most feared terror organization Al-Qaeda denounced and called them out on the severe terror they’ve been reigning.

Locally, Al-Shabaab has been the sole terror group that has been on the prowl in destabilizing Kenya’s security. With ISIS coming in, the enemies have replicated, and rivalry between two groups could lead to more penis measuring attacks. The Kenyan security agencies should, therefore, heighten surveillance around the clock.

The Space Lounge has been in the middle of court battles and scores settling following complaints from the Kilimani Project Foundation on behalf of residents who asked for the closure of the club following complaints of too much noise coming from the club.

The Club, a favorite spot with middle age revelers along Ngong Rd, had its license previously revoked by the County Gov but later resumed operations on conditions they’ll adhere to set sound standards. However, the Kilimani Foundation went ahead further to open afresh complaints with the County Gov that the house hasn’t subsided and the nearby residents were being denied sleep.

The latest obstacle is from the Liquor Licencing Board of the County Gov that has declined the request of the club meaning the club is barred from selling alcohol within the premise and doing so is contrary to the regulations. Whether the proprietor is going to honor this directive is another thing. We’ve also heard of personal differences between the parties involved with the Kilimani Project leadership said to be having the personal vendetta with the Club’s Proprietor and relentlessly pushing for its closure, but that’s a story for another day.

More Drinking of Alcohol At Popular Space Lounge

The Space Lounge has been in the middle of court battles and scores settling following complaints from the Kilimani Project Foundation on behalf of residents who asked for the closure of the club following complaints of too much noise coming from the club.

The Club, a favorite spot with middle age revelers along Ngong Rd, had its license previously revoked by the County Gov but later resumed operations on conditions they’ll adhere to set sound standards. However, the Kilimani Foundation went ahead further to open afresh complaints with the County Gov that the house hasn’t subsided and the nearby residents were being denied sleep.

The latest obstacle is from the Liquor Licencing Board of the County Gov that has declined the request of the club meaning the club is barred from selling alcohol within the premise and doing so is contrary to the regulations. Whether the proprietor is going to honor this directive is another thing. We’ve also heard of personal differences between the parties involved with the Kilimani Project leadership said to be having the personal vendetta with the Club’s Proprietor and relentlessly pushing for its closure, but that’s a story for another day.

Screenshots of an HIV-Infected person who confided to his friend for being on a revenge mission to infect as many families as possible has surfaced online.

In what looks like a friendly conversation, the man whom we’ve identified with his Facebook names as Francis Frank, doesn’t hide the fact that he’s infected with the virus but vows not to go down the grave alone. Frank, says he’s on a mission to infect as many people with the virus with his mission targeting wives of others, in his thinking, this will broaden the virus network to more people around.

Its criminal to intentionally sleep without protection knowing you’re infected with the virus without informing the partner. Exposing one to the virus is punishable. Therefore this beast needs to be for the next ride to jail and must pay for the heinous act. Again the social media is going to play a significant role in serving justice and eliminating dimwits and evil kinds as this. Find screenshots below;

A Sudan , Khartoum-born, Osman a powerful businessman and recently married in Kenya where he’s been living for 20 years to one Sophia Roba and influential figure, fled the country following sharp differences with President Bashir since they contradicted in ideologies as Mwalim Brotherhood and terror that the President reigned on his opponents which later landed him and still a wanted man by the ICC for crimes on humanity including mass murder.

Osman is said to have fled to Dubai then Rwanda and lastly Saudi Arabia where he made powerful business networks including with the Royal family where he worked for Prince Abdul Aziz, became his confidant and later sent him to Kenya as his agent on the Galana project that he was investing in.

The prince appointed Mr. Hassan Babakar Osman, to be his local agent and charged him to prepare a memorandum of articles of association in 2010 with the objective of setting up an agricultural investment in Kenya, partly financed by the Saudi Government.

This was in line with a presidential initiative “calling for international businessmen to invest in food security by offering them land.”

The King was leased 100,000 acres from the Agriculture Development Corporation (ADC) on the property known as Galana Ranch/Block 1/1 situated in Kilifi County for 16 years under a renewable contract.

However, along with the way, things turned the other way with the Prince suing Kenya and accusing his local partners (foreign investors required to partner with locals in managerial posts) tried or rather schemed to fraud him if his shares in the company that was formed under Osman’s signature.

Prince claimed that through forged documentation, his majority shareholding of 900 out of 1,000 shares of the Arafco Agriculture Integration Company Ltd was fraudulently transferred without his consent to local directors under the name Milestone Developers Ltd as majority shareholder.

The local businessmen the Prince listed as his partners were Mr. Mohammed Koriow Nur, Mr. Mohammedulamin Mohamud and Mr. Mohammed Hirei Bare Ahmed who had six per cent, three per cent, and one per cent shares respectively. In an affidavit, the Saudi Prince informed the government that his partners were frustrating his protege Osman and fabricating crimes to see him overthrown.

Hassan Babakar Osman was recently arrested by ATPU at his Muthaiga home and accused of facilitating the recruitment of youth to join terrorist groups. The Anti-Terrorism Police Unit informed the Milimani senior resident magistrate Helen Onkwani that they need more time for investigations to ascertain he’s a local ISIL agent

The court was informed that the suspect was also forged a letter of attorney purporting to have been vested powers by the Prince of Saudi Arabia to transact business in Kenya on his behalf.

The prosecution further said that Osman is wanted by the Saudi Arabian government for the purpose of instituting charges of using the said forged letter of attorney to swindle money from the public.

The court papers stated that intelligence reports so far received by investigators indicated that the suspect is an associate of unknown ISIS and ISIL recruiters in and outside the country.

However, the intrigues in the case baffles, on Tuesday, Kenya Insights learn that a senior Jubilee politician from Garissa County called the magistrate blocking the release of the investor Hassan Osman. The same politician called the suspect’s lawyer Cliff to abstain from representing the investor. In the mean time, the investor has continued to be confined at Muthaiga police station. The investor has been arrested on several occasion and released with out charge. The investor is now under incarceration and medical and health complication where he has been denied access to the even government hospital for treatment.

Hassan was once arrested at JKIA over accusations of owning a fake passport which was then verified by the Somalia government, and he was released. Today amongst charges he’s being held with includes possession of a fake Somalia Passport.

Hassan’s project that he initiated on behalf of Saudi Prince would create employment over 4000 Kenyans generate foreign currency on the portion of sugar that will be exported to Saudi Arabia as per the terms of investments he was in the process if bringing in the Prince of Saudi Arabia to invest 150 million dollars to upgrade Kenya Meat Commission and the P.S. the MD and the board of KMC were going to finalise with the prince on a special visit to Saudi Arabia which had been finalised this would have up graded the Athi River KMC and MSA KMC to the status of European standards and cope with the high demand of meat supply to Saudi Arabia and the Arab world to approximate cover up to 70 % demand helping the pastoralist and generate more foreign currency it is wrong to do this to an investor who trusted Kenyans gave them 10% shares in return forged for 100 % shares total shame.

While the benefits that the investment was to come with remain constant, the bulk of case remains with the ATPU to prove that the investor has links with ISIL and if found guilty then should be prosecuted with the same. Kenya being Kenya, dirty play can neither be over ruled in this field since rivals are often at alert to fabricate and with malice accuse one of none existent crimes and using their positions and connections within power circles to frustrate rivals.

If that were that case in Hassan’s, it would be an unfortunate trend, and a scare alarm to investors was looking into pumping their money into Kenya. The case needs to be followed with keen interest especially up from the President’s office who should shield investors from monkey dealers in town at the same time being vigil with terror motives. It’s a catch two. If determined that Hassan has no terror links then the interest parties too need to be brought to justice for frustrating investors.