Nairobi — The Director of Public Prosecutions (DPP) has secured a conviction after the Milimani Law Court sentenced Chinese national Cai Rongui to pay a fine of Sh6 million for tax fraud.
Cai was found guilty of deliberately failing to declare income and Value Added Tax (VAT) for the years 2018 and 2019, amounting to Sh162,233,500 each year. The conviction follows charges under Section 97(e) read with Section 104(3) of the Tax Procedures Act, 2025.
The court imposed a fine of Sh1.5 million for each of the four counts, totaling Sh6 million. According to the charges, on June 31, 2019, Cai, as the beneficial owner of Yiyuan Trading Company Limited, intentionally failed to declare income for 2018 and 2019 to the Commissioner of Taxes in Nairobi County.
The Office of the Director of Public Prosecutions (ODPP) explained that this omission led to an undeclared income tax liability of Sh48,670,050. Additionally, Cai was found guilty of failing to declare VAT amounting to Sh162,233,500, which resulted in an outstanding VAT liability of Sh25,957,360, in violation of the Value Added Tax Act, CAP 35 of the Laws of Kenya.
The prosecution, led by counsel James Gachoka, presented two witnesses to support the case.
