William Ruto's close ally Mary Wambui free after deal in Sh2b tax case with KRA

In political circles, people call her 'Wambui wa Ruto'. She was a major financier of the Jubilee Party campaigns. [File, Standard]

As a result, KRA had argued it lost Sh2.18 billion in taxes, accruing from failure to include Sh4.5 billion income she made after supplying several government agencies. The supplies were made between 2015 and 2019.

10 years in prison

For the offence of omission, the penalty is a fine not exceeding Sh10 million or double the tax evaded, whichever is higher, or imprisonment for a term not exceeding 10 years, or both. For the offences of failure to submit a tax return and pay tax, the penalty is a fine not exceeding Sh1 million and imprisonment for a term not exceeding three years, or both.

The due tax, Sh2.1 billion, is to be paid despite prosecution.

"The amount of any tax or late payment interest due and payable under a tax law shall not be abated by the prosecution of a taxpayer for an offence under a tax law," Section 108 of Tax Procedures Act, 2015 says.

Close ally of President Ruto

In political circles, people call her 'Wambui wa Ruto' presumably out of her known close relations with the Head of State. At the same time, she was a major financier of the Jubilee Party campaigns.

A quiet woman, over the years she has inked major government tenders, including supply of military uniforms, carving an enviable place for herself in Uhuru administration circles. When Ruto was swron-in as President, she was among the first businesspersons to visit him in State House, and was subsequently appointed chairperson of CA Board.

The case lodged in 2021 at the height of KRA's purge against businesses that were allegedly not paying taxes, put her in the spotlight. She did not turn up in court to answer the charges against her and KRA obtained a warrant of arrest. In court, her two daughters disowned their role in the company.

In documents filed before Justice Cecilia Githua, the petitioners Evelyn Nyambura Mungai and Njoki claimed that Wambui added them as directors of Purma while they were minors and without their consent.

Court records read that KRA was conducting tax evasion investigations on Purma. On June 17, 2021, it wrote to the three requiring them to appear before its investigators to assist them with information before June 28, 2021 failure to which they would be arrested and charged.

While arguing that they had nothing to do with their mother's firm and thus did not know about its operations, Nyambura and Njoki told the court that their mother was in Zambia and they had been left to pursue their respective lives.

Carry her own burden

"The second and third respondents (Nyambura and Njoki) had been put as minority shareholders and directors at incorporation of the company by the first applicant (Wambui), their mother, without their consent having been minors and in school.

Over the years, Wambui has inked major government tenders that include supply of military uniforms. [File, Standard]

"On her own volition on having judged that the business did not rhyme with the daughters' desires and interests in life, she removed them from shareholding and directorship," their lawyer Walubengo Waningilo argued.

Nyambura and Njoki asked the court to give them anticipatory bail to prevent their arrest. They said KRA should wait for their mother to return "and carry her own burden".

Details about Purma Holdings

According to a company registration form filed in court, the firm was incorporated on February 13, 1996, with a nominal share capital of Sh1 million and share value of 10,000 per share. The form indicated that Wambui was the sole director and secretary, holding 1,000 shares.

Wambui then transferred 150 shares each to Nyambura and Njoki worth Sh30,000. A transfer of shares or stock document, which was also produced in court, showed that both girls and their mother signed acknowledging the same.

To prove that they parted ways with their mother, Nyambura and Njoki attached a letter written on August 28, 2019, by Njoki to her mother saying she had called it quits for personal reasons.

Njoki and her mother were eventually charged after she surrendered. They denied the charges. On Tuesday the DPP asked the court to end the trial. Wambui's lawyers, Adrian Kamotho and Nelson Havi, did not oppose.

Milimani Anti-Corruption Court Chief Magistrate Felix Kombo allowed the DPP's prayer to have the businesswoman let off the hook.