Chinese trader jailed for four years for Sh74m tax evasion

Cai Ronggui, owner of Yiyuan Trading Company Limited was found guilty of four counts of tax evasion and sentenced to four years in prison by the Milimani Magistrate's Court in Nairobi on January 24, 2025. 

Photo credit: Wilfred Nyangaresi | Nation Media Group

A Chinese national has been sentenced to four years in prison for a Sh74 million tax fraud.

Cai Ronggui was also given the option of paying a Sh6 million fine after being found guilty of four counts of tax evasion.

Milimani magistrate Benard Ochoi said the sentences should deter similar behaviour.

Mr Cai is the owner of Yiyuan Trading Company Limited. The court found him guilty of failing to declare income tax and value added tax (VAT) for 2018 and 2019.

The court heard that Yiyuan Trading Company was actively generating income in 2018 and 2019, earning a total of Sh162.2 million.

However, the trader deliberately failed to declare this income to the Kenya Revenue Authority (KRA), thereby evading tax.

For the year 2018, the company earned a total of Sh60.4 million but failed to declare the amount, resulting in a tax liability of Sh18,135,900.

The prosecution added that for the year 2019, his company’s earnings amounted to Sh101,780,500, with an income tax liability of Sh30,534,150, which he failed to pay.

During the same period, Mr Cai failed to declare VAT, resulting in additional tax liabilities of Sh9,672,480 (2018) and Sh16,284,880 (2019).

The accused prayed for a lenient sentence but the prosecution submitted that he should be held accountable for his actions and omissions.

Mr Ochoi noted that the Chinese national was a first-time offender as he had no history of prior offences or convictions.

He sentenced him to 12 months on each count.

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