KRA obtains orders to freeze 7 bank accounts of firm involved in NYS scam

The Kenya Revenue Authority has obtained temporary orders freezing seven bank accounts belonging to Estama Investment Limited, which is at the centre of the Ministry of Health’s Ksh1 billion mobile clinics scandal.

In the case, KRA lawyer Okello Ogello told Lady Justice Grace Nzioka that he has credible information that the company accumulated substantial sums of money through its business dealings with the ministry, and intends to access it to recover value-added tax.

According to court documents, investigations into the firm’s transactions reveal a possible overstatement of the purchase of up to Ksh819 million to reduce VAT liability.

Estama Investments has, however, insisted it does not owe the taxman any dues and has now filed an application in court to suspend agency notices KRA has issued to its bankers.

The case will be mentioned on the 23rd of March this year.