Transsion Holdings, the Chinese tech giant behind popular Android smartphone brands Tecno, Infinix, and Itel as well as smartphone accessory brand Oraimo, consumer electronics brand Synix and Carlcare, an after-sales service provider, is reportedly under scrutiny in Kenya for alleged massive tax evasion exceeding Ksh 400 billion. This bombshell report by Kenyan Insights comes as a shock to many, as the company’s affordable Android devices have enjoyed immense popularity across the country and Africa at large for so long that it now sits in the top 5 smartphone brands in the world.
The allegations paint a picture of a company allegedly prioritizing profits over its financial obligations to the Kenyan government. According to sources, the Kenya Revenue Authority (KRA) has launched a thorough investigation into Transsion’s financial records for the past five years. The probe follows whistleblower claims and public scrutiny, particularly online thanks to blogger Cyprian Nyakundi who has incessantly posted on X about the matter over the past few days under the hashtag #TecnoTaxEvasion, raising concerns about the company’s alleged involvement in tax fraud and other illicit activities.
The claims are particularly alarming given the widespread use of Tecno, Infinix, and Itel phones in Kenya. These brands have become synonymous with affordable Android devices, catering to a vast consumer base across the country. Yet, if the allegations prove true, this raises serious questions about the company’s commitment to ethical business practices in one of its most lucrative markets.
Kenyan Insights reports that Transsion allegedly conducts a significant portion of its financial transactions in cash, which is seen as a potential red flag for tax evasion. The company is also accused of importing undocumented Chinese workers and engaging in discriminatory practices against local employees.
This is a developing story with significant implications for both Transsion and the Kenyan government. If the allegations are substantiated, it could severely damage the company’s reputation and lead to substantial fines and penalties. Moreover, it would underscore the challenges faced by African nations in ensuring that multinational corporations contribute their fair share to the economy.
For now, it’s important to emphasize that these are still allegations and not proven facts. However, the potential scale of the tax evasion, coupled with the widespread use of Transsion’s products in Kenya, makes this a story worth watching closely. As more information comes to light, the Kenyan public will be eager to see whether justice is served and whether the company will be held accountable for its alleged actions.
Disclaimer: This article is based on reporting by Kenyan Insights and should not be taken as a confirmed fact. The investigation is ongoing, and Transsion has not yet responded to the allegations.
