Kenya launches crackdown on rights groups over tax evasion, illegal hiring

NAIROBI - The Kenyan government on Tuesday announced the deregistration of two human rights and governance lobby groups, citing their failure to adhere to domestic tax and employment regulations.

Executive Director of NGO Coordination Board, Fazul Mahamed ordered the Kenya Human Rights Commission (KHRC) and African Center for Open Governance (AFRICOG) to shut down over violation of tax and employment laws alongside operating without a license.

A statement from Mahamed singled out KHRC for opening and operating four illegal bank accounts while failing to remit taxes amounting to $1 million.

The statement added the human rights lobby has employed expatriates without valid work permits in contravention of domestic laws.

"Kenya human rights commission financial statements do not give a true and fair view of their financial position as of October 2016," said Mahamed while ordering state agencies to freeze accounts operated by the rights lobby and deport foreigners working there without work permits

The official accused AFRICOG of operating without a registration certificate and presenting contradictory statements on its key activities.

"We have noted that AFRICOG is not registered under the NGOs Coordination Act 1990 as required by law. It continues to operate as a charitable organization in direct contravention of Section 22 (1) which according to the Act is an offense punishable by law," said Mahamed.

He directed the Central Bank of Kenya to freeze all bank accounts belonging to the governance lobby and ordered its directors to shut down its offices until further notice.

However, officials from the lobby groups have accused the State of violating laid down procedures while ordering their deregistration.

KHRC Executive Director George Kegoro said his organization has always filed tax returns since it commenced operations and had not contracted the services of foreigners without work permit.

"We have always maintained the highest level of professional integrity and have always complied with Kenya's tax and labor laws," Kegoro said, adding that deregistration of the two lobby groups was an affront on Kenya's expanding democratic space.

"Deregistering us is another chapter in the attempt to harass KHRC. KHRC maintains a high level of financial integrity and we are up to date in our filings. This is an act of intimidation," he added.

Kegoro said Mohamed enjoys political defence, which is why he has not been sacked despite evidence that he forged documents.