Former Kenya Revenue Authority manager Joseph Gikonyo and his wife Lucy Kangai have denied Sh38.6 million tax evasion.
The two, who are also being investigated for allegedly amassing more than Sh600 million wealth, are alleged to have fraudulently failed to pay Sh38,692,694 taxes arising from their company Giche Ltd's income and accrued penalties between 2010 and 2015.
State counsel Annette Wangia did not opposetheir application to be released on bail but asked the court to consider the seriousness of the offence.
Defence lawyer Ismael Abbas said it was not clear why his clients were charged when they had already paid Sh20 million taxes and the payments acknowledged by KRA.
Abbas said there is a civil suit on the same issue at the High Court and the case should not have been brought to court.
Chief magistrate Lawrence Mugambi released the couple on a Sh5 million bail each or Sh10 million bond.
But Abbas challenged the bail conditions and asked the magistrate to recuse himself on grounds of bias.
But Mugambi said he has handled many similarcases.
On Monday, the Ethics and Anti-Corruption Commission said they have been investigating allegations that Gikonyo had unexplained wealth and failure to pay taxes.
The former manager has filed a case at the Anti-Corruption Court seeking to forfeit Sh597,457,059 he is alleged to have acquired.
Edited by R.Wamochie
