KRA manager Joseph Gikonyo and his wife Lucy Kangai have denied a charge of fraudulent failure to pay taxes to the taxman.
They were arraigned on Tuesday.
It is alleged that on diverse dates between 2010 and 2015 in Mombasa, being directors of Giche Ltd, they fraudulently failed to pay Sh38,692,694 in taxes arising from the company's taxable income and accrued penalties.
State Counsel Annette Wangia did not oppose their release on bail but asked the court to consider the seriousness of the offence.
Chief Magistrate Lawrence Mugambi released them on Sh5 million cash bail each or alternative bond Sh10 million.
The Ethics and Anti-Corruption Commission on Monday arrested Gikonyo.
The anti-graft agency has also been investigating Gikonyo over unexplained wealth and assets of about Sh600 million in five years.
CEO Twalib Mbarak in a statement said the commission has been probing the former KRA official alongside his wife Lucy Kangai and their company trading as Giche Limited.
“A civil suit was filed at the Anti-Corruption and Economic Crimes Division of the High Court for forfeiture of the assets,” the statement reads.
Director of Public Prosecutions Noordin Haji granted EACC consent to first prosecute the two on the tax evasion charge.
The KRA manager’s arrest came barely days after the EACC successfully prosecuted Sirisia MP John Waluke over a Sh300 million fraud at the National Cereals and Produce Board.
The lawmaker and his co-accused Grace Wakhungu were handed 67 years and 69 years in jail respectively. The agency warned of more high-profile convictions.
