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Kenya Revenue Authority is now seeking Sh3 billion in taxes from Kiwipay Kenya Limited; a company embroiled in Sh2.3 billion monies that had initially been frozen over money laundering claims.

In a new suit, a foreign investor who claims to be the main shareholder and Director of Kiwipay Kenya Ltd, claims the company continues to go deeper into debt as several suits regarding the firm await determination.

Monthida Rashi from Laos, a South east Asian country, is fighting to control the cash and company against three Kenyans who also lay claim to the said billions held at Eco Bank.

Rashi claims that the three Kenyans; Maina Njenga, Felix Rekishe and Solomon Maina resigned and therefore, could not purport to act for the company.

An order freezing the money was lifted last September after the Assets Recovery Agency (ARA) withdrew the application seeking to forfeit the money to the government.

Court last month ordered the company to pay Rene & Hans Advocates LLP Sh337 million for acting on behalf of the three Kenyans, who had challenged their alleged removal as the firm’s shareholders and directors.

However, in the new suit, Rashi claims the company stands to be penalised and lose business as a consequence of indebtedness and inability to meet its financial obligations whilst funds are held on the basis of the order procured through fraud, misrepresentation and ill motive. “Eco Bank has whilst the orders are subsisting paid money to other parties and consequently some of the liabilities that have accrued as debts to the company including statutory outgoings and taxes which have fallen due and attract penalties,” Rashi stated in court documents.

Law firms

The SouthEast Asian National has also accused several law firms of exaggerated and fabricated claims on legal fees and other consultancy fees amounting Sh500 million

Rashi, through lawyer Wilfred Mati, claims she has been frustrated by various court orders as an investor and several law firms have obtained the orders for exorbitant payments.

“Company stalled its operation in November, 2022 as its funds in the account were frozen and dbts including taxes have accumulated and their debts now stand at Sh67 million,” she said in court documents.

It is her case that the said lawyers represent the interests of parties other than Kiwipay Kenya Limited where she is a director and shareholder.

She wants the court to order the law firms to refund the Sh500 million paid to them and the consent orders reinstating the three Kenyans as directors be suspended pending hearing of the suit.

She also wants the 10 suits filed relating to the company be consolidated and heard by one judge.

Justice Josephine Mongare of the Commercial Division directed the files be placed before Justice Alfred Mabeya for directions