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State deregisters Makau Mutua’s NGO over ‘tax evasion’

The government has deregistered the Kenya Human Rights Commission (KHRC) for failing to account for Sh1.2 billion, operating illegal bank accounts and failing to pay taxes.

In a notice of de-registration by the Executive Director of the NGOs Coordination Board Fazul Mahamed, the commission has also been accused of employing expatriates without valid work permits and concealing payments done to the board members.

But in a swift rejoinder, KHRC chairman Prof Makau Mutua dismissed the move as “ugly and detestable lies”.

The notice addressed to Prof Mutua details the reasons why the NGO Board cancelled the commission’s registration.


“KHRC financial statements do not give a true and fair view of their position as of 4th October 2016 and subsequently it cannot be ascertained that the Kes1.2 Billion received by the organization during the same period is fully accounted for and whether the finances were used for the intended purpose in accordance with the Constitution of the KHRC, Financial Reporting Guidelines and the requirements of the NGOs Coordination Act 1990,” read the notice in part.

“Your organization has failed, decline or refused to pay statutory taxes to the Kenya Revenue Authority amounting to Kes 100 million as provided for under schedule 10 of the Income Tax Act. Your organization has and continues to conceal illegal remuneration to your board members. The said remuneration found in the notes but not traceable in the main statements of accounts and the statement of comprehensive incomes and expenditure of KHRC,” added the Board.


The board directed that the accounts of the commission be frozen as the revenue collector initiates the process of recovering accrued tax and all foreign workers with no permits be deported.

“The Central Bank Governor is hereby advised to immediately preserve all funds held under the name Kenya Human Rights Commission. The commissioner general of the Kenya Revenue Authority is advised to initiate the process if recovering all accrued taxed by KHRC amounting to Kes 100 million. The director of immigration should immediately deport all foreigners working at the Kenya Human Rights Commission without valid work permits,” wrote Mr Mahamed.