Oki General Trading Limited has found itself under intense scrutiny after the Kenya Revenue Authority issued a Notice of Additional Assessment demanding payment of more than Sh810 million in unpaid taxes, penalties, and interest.
The company is accused of running a complex tax evasion scheme spanning four years, with its Country Manager, Deepak Rajoriya, at the center of the storm.
Investigators allege that Rajoriya worked with businessman Karan Badlani, the director of Satnam Limited, to create a network of companies that falsified import documents and concealed the true value of goods brought into the country.
One case that caught the eye of authorities involved luxury perfumes valued at more than USD 300,000, for which duty of only Sh2 million was paid, a move KRA says was deliberate and part of a wider plan to siphon money abroad.
The allegations go beyond unpaid taxes. Badlani is accused of staying in Kenya illegally for more than two and a half years, with his presence reportedly protected through political connections.
Rajoriya is said to have used influence and financial power to silence oversight, keeping the scheme running undetected for years. The KRA audit covering October 2020 to September 2024 revealed serious under-declarations, including salaries amounting to Sh3.9 million and benefits such as rent and commissions that were never taxed.
Bank records from Ecobank and Absa also showed drawings by directors and senior staff classified as taxable income but not subjected to PAYE, leading to a liability of Sh251.8 million.
The audit further uncovered understated sales and misrepresented reconciliations, with unexplained variances totaling Sh173.1 million, out of which Sh137.7 million was taxable.
Customs checks revealed undeclared imports linked to Satnam Limited worth Sh495.8 million and significant understatement of profits, pushing Oki’s corporation tax liability to Sh428.4 million.
KRA also raised Sh100.4 million in VAT on understated sales and disallowed Sh4.3 million in input VAT claims due to duplication and ineligible expenses. Failure to withhold taxes on professional fees added Sh4.1 million to the bill.
With a total liability exceeding Sh810 million, Oki General Trading has been given 30 days to object before the amount becomes due.
The case has drawn public outrage, with analysts calling the operation a form of economic sabotage that deprived the country of funds for health, education, and infrastructure.
Experts insist that beyond recovering the money, KRA must prosecute those involved and blacklist Oki and its affiliates from operating locally.
For the tax authority, this is seen as a crucial test of its resolve to hold politically connected business figures accountable and reassure Kenyans that tax compliance applies to everyone.
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