A concerned Kenyan has urged the Kenya Immigration Department and Kenya Revenue Authority (KRA) to swiftly investigate alleged tax evasion and potential work permit violations at KCIC Consulting.
Work Permit Concerns
There are concerns that Prabkahar Vanam, CEO of KCIC Consulting, may be working in Kenya without a valid work permit.
This would violate the Kenya Citizenship and Immigration Act, 2011, which requires non-citizens to have a visa or work permit to legally stay and work in Kenya.
The act specifically mandates that employers must secure a work permit or special pass for any foreign nationals they employ.
Violations can lead to fines up to Ksh. 500,000, up to three years of imprisonment, or both.
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Tax Evasion Allegations
In addition to immigration concerns, KRA detectives have been urged to investigate tax evasion at KCIC Consulting.
Allegations claim that the firm’s management has been bypassing required tax obligations by failing to deduct and remit Pay As You Earn (PAYE) tax for certain consultants, resulting in revenue loss for the government.
Instead, KCIC Consulting allegedly only pays a 5% withholding tax on these employees’ salaries, which is significantly less than the required PAYE rate of 25%.
Among these employees are several high-paid consultants with monthly earnings around Ksh. 500,000. KCIC reportedly remits just Ksh. 25,000 to KRA as withholding tax each month, rather than the full PAYE amount.
The firm’s spokesperson argues that these workers are consultants, not employees.
However, according to Kenya Revenue Authority employment guidelines, these individuals qualify as employees, which would require KCIC Consulting to fully meet PAYE obligations.
Legal and Financial Implications
Financial analysts point out that the firm’s current arrangement would only be permissible if KCIC Consulting were paying consulting fees to a separate, registered consulting entity, which would then handle the PAYE remittance.
Instead, the current setup implies direct employment relationships, raising suspicions of tax evasion and fund mismanagement intended to evade KRA obligations.
The petition further calls for KRA to expand its investigation into other companies with business dealings involving KCIC Consulting to identify any additional cases of tax evasion.
About KCIC Consulting
Located at Golf View, Ground Floor on Wambui Road in Nairobi, KCIC Consulting is an Africa-based sustainability consulting firm specializing in providing practical, sustainable solutions tailored to companies aiming for global impact.
Operating Monday through Friday until 5 pm, it combines local insights with a user-friendly, company-specific approach to address environmental and business challenges.
For inquiries, KCIC Consulting can be reached at 0762 812276.
