A businessman who delivered supplies worth Sh65 million to Trans Nzoia county was recently charged before Eldoret senior principal magistrate Naomi Wairimu with tax fraud amounting to Shh3 million. Joab Lumbasi Simiyu, director of Africonnect Limited, faced four counts of charges jointly with the company. Simuyu is close to Governor Patrick Khaemba and county First Lady Lydia Khaemba. Simiyu is said to have landed the lucrative tender courtesy of the First Lady.
Those well versed with the deal claim he decided not to pay the taxes after parting with millions of shillings in kickbacks, fox paying the taxes would have seen him incur losses in the tender deal. He faced two counts of failure to pay VAT of Sh2.9 million and Sh155, 000 for the years 2015 and 2016. He also faced two other counts of failure to submit tax returns for the two years as required under tax procedures Act 2013.
The accused pleaded not guilty to all the charges and were released on a bond of sh100, 000 with a surety of similar amount. KRA tax assessments on the taxpayer-Africonnect Limited, established that the company had been awarded a tender by Trans Nzoia county government and paid monies in the sum of Sh65,000,000 for supply of two rotary drilling rigs each for Sh33,500,000. Africonnect Limited executed the tender and was paid but neither filed VAT returns nor paid tax due. The case is set for hearing on February 2021.