The hoteliers  have been summoned to court to face charges relating to tax defaults.

The prosecution says they have been deliberately defaulting  to remit VAT  the due date.

Alfred Kigera Karume, Kungu Gatabaki , Jane Grace Njoki Njenga, James Raymond Njenga, Mary Wambui M’Mkindia, James Kinondo Ngata and Jacaranda Hospital are accused of defaulting to remit  tax amount millions of shillings.

The first count places the default at to KSh 43,581,360 between  April 20  and  December 20 2016.

On the second count , the directors are  charged with defaulting to remit tax amounting to KSh44,446,836. 4.

They accused of accruing a further Ksh32,816,825.9 and another KSh32,514,159 on the same dates.

A magistrate issued sermons against the bigwigs to appear in court on July 24 2018 to plead to the charges.

Willing to settle

The hotel which is owned by the late powerful  Minister Njenga Karume, sued KRA  in February for declining its offer to offset the tax arrears in installments.
KRA had sent auctioneers to recover the amount on their behalf in January in a bid to enforce the demand.

The hotel, based in Westlands Nairobi, had paid KSh15 million out of KSh95 Million and had floated a proposal to pay the balance in 12 to 18 monthly installments.

However, KRA sent a demand that it should offset KSh50 million clear the balance in three months.
The petitioners claimed that in September 2016, the hotel was barred from charging or disposing any of its assets which is still pending before court. As the result they have procured an undertaking from Njenga Karume trust fund, a shareholder of Jacaranda to loan it funds to settle the monthly installments as per the proposal with KRA.
The hotelier says that it willing to settle the arrears.