The High Court in Nairobi has upheld a decision by the Kenya Revenue Authority (KRA) and the Director of Immigration to bar Chinese investor Cai Jiupeng from leaving Kenya due to unpaid tax arrears totaling Ksh 83.5 million.
Justice Lawrence Mugambi ruled that Jiupeng, who represents Huiye Kenya Trading Co. Limited and Yingluo International Trading Co. Limited, must clear the tax debt before being allowed to travel. “The respondents (KRA) acted within their mandate by implementing preventive measures to curb potential revenue losses through tax evasion,” said Justice Mugambi. He emphasized that Jiupeng’s role as a tax representative and his financial transactions linked to the companies supported KRA’s actions.
Jiupeng, who has lived in Kenya since 2019, filed an appeal seeking to lift the travel restriction. He argued that the ban violated his constitutional right to freedom of movement and caused him significant business losses. Jiupeng denied being a director or controlling partner in the companies, claiming he was an employee without authority over the companies’ finances. He described the restriction as an unlawful act by KRA and argued that the agency should pursue the company owners instead of penalizing him.
The investor also contested the validity of a power of attorney that connected him to the tax arrears, asserting he signed the document under coercion. However, KRA dismissed his claims, stating that Jiupeng had filed nil tax returns despite clear evidence of sales transactions by the companies.
KRA justified the travel ban, citing Jiupeng’s failure to register for VAT obligations, despite the companies engaging in vatable sales. The agency also revealed that suspicious financial activities, including large deposits into Huiye Trading Company Limited’s bank account, prompted further investigation.
