Konnichiwa,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- Kenya freezes VAT to bust fraudsters
- No more listings: This startup’s laying bricks
- Ex-Binance exec bids bye after jail ordeal
Kenya freezes VAT to bust fraudsters
Kenya’s value-added tax (VAT) system is currently on ice. The Kenya Revenue Authority (KRA) has hit pause on all new online VAT registrations, per BusinessDaily. This move comes as part of a big cleanup, cracking down on suspected tax fraud and fake traders. The move was flagged by local media, saying it targets the dodgy “missing trader” scheme and internal staff collusion.
For context, the “missing trader” scam is classic: fraudsters set up fake companies, issue bogus VAT invoices, then vanish without paying the collected tax. KRA estimates this scheme was bleeding billions from the national coffers. They’ve also tightened internal controls to stop employees helping these fake setups from the inside.
Interestingly, this cleanup appears to be paying off. Reports from local outlets suggest VAT collections hit a record KSh 32.1 billion recently, following the fraud purge. That’s quite a swing after shutting down dodgy online signup channels and potentially ghost companies.
KRA’s freezes apply to new VAT registrations and a clean-up of existing non-filers. Over 66,000 taxpayers have already been removed from the system for repeatedly failing to register or file returns. The authority made it clear: no more tax-free ride for shell businesses and ghost entities.
Now, though, real businesses are feeling the pinch. Entrepreneurs looking to register for VAT are stuck, unable to issue invoices, claim input tax, or grow properly. Plus, with non-respected registrations being whittled down, those who play by the rules are waiting in a long line.
Bottom line is KRA’s clampdown is a double-edged sword. It’s cleaning up tax dodgers and boosting revenue, but it’s also causing registration nightmares and slowing down legit business activity. As Kenya’s business community waits for the freeze to end, the hope is that transaction clarity outweighs the current bottlenecks.
No more listings, this startup’s laying bricks
“We cannot AI our way out of it.” That’s the blunt reality check from Era Iyayi, founder of Citiliving, a Lagos-based proptech startup that’s skipping the hype and getting its hands dirty, literally. With Nigeria’s housing deficit now over 28 million units and counting, Iyayi says the solution isn’t more tech; it’s more homes.
Lagos is at the heart of the crisis. Over 60% of the city’s residents live in rented homes, and most of those are overcrowded or just flat-out substandard. Rent has gone up at least 30% on paper, but ask any average Lagosian, and they’ll tell you it feels more like 100%. With the urban population exploding, up 136% since 2000, the supply is failing miserably to catch up with demand.
Citiliving isn’t trying to build another house-hunting app. After watching a staff member struggle for months to find a decent apartment, even after getting a loan, Iyayi realised the issue wasn’t access, it was availability. That “aha” moment turned into Citiliving, which in just over a year has built 47 housing units in Lagos and Abuja, with plans for 200 by the end of 2025.
They’re taking a bold approach by building directly in city-centre hotspots like Maryland, Yaba, Ikeja, and Lekki, areas where infrastructure is reliable and people actually want to live. “We’re not in Iyana Ipaja or Kuje, not because they don’t matter,” Iyayi says, “but because access to jobs and transport is key to true affordability.”
So how’s Citiliving funding all this construction? That’s where things get interesting. Find out more about this in Bolu’s latest story here.
Ex-Binance exec bids bye after jail ordeal
Tigran Gambaryan, Binance’s former Head of Financial Crime Compliance, has officially left the company, months after a harrowing eight-month detention in Nigeria. The ex-IRS agent made the announcement in a heartfelt LinkedIn post on June 8, saying it’s time to move on and refocus on tech, enforcement, and compliance work.
His resignation wraps up what’s been a dramatic chapter in both his life and Binance’s legal saga. Gambaryan was arrested in February 2024 during a business trip to Nigeria alongside Binance’s Africa manager, Nadeem Anjarwalla. Both were accused of aiding currency speculation and money laundering to the tune of $35.4 million. While Anjarwalla famously escaped custody, Gambaryan remained in detention.
Held first in a government guesthouse, then in Abuja’s notorious Kuje prison, Gambaryan’s health took a nosedive. He battled malaria, pneumonia, and tonsillitis, and was even seen in court struggling to walk due to a herniated disc. That clip sparked global outrage, with U.S. lawmakers and rights groups calling for his release.
In a speech earlier this year, he hinted that Nigerian officials were using him as leverage, allegedly asking for Binance user data and a $150 million bribe, claims Nigeria denied. International pressure during the UN General Assembly seemed to turn the tide, and by October 2024, charges were dropped “on humanitarian grounds.” He flew back to the U.S. soon after.
Gambaryan joined Binance in 2021 to clean up its image on anti-money laundering. He built the exchange’s first investigations team and worked closely with global enforcement bodies. Still, Binance has continued to face heat from regulators, especially after its founder Changpeng Zhao stepped down and the firm paid billions in fines.
In his farewell note, Gambaryan said he’s proud of what he built at Binance, despite the personal cost. He missed major life moments, like his son’s 5th birthday and 15th wedding anniversary, but is now focused on recovery and possibly rejoining the crypto compliance world in a new role. One thing’s clear: he’s not done just yet.
In case you missed it
- Amazon CTO Werner Vogels announces plans for development centers in Africa during Lagos visit
What I’m watching
- 100 AIs Judge Muslim, Christian, Hindu & Jewish Scriptures
- Do personality tests work? – Merve Emre
Opportunities
- Want to exhibit or attend the Lagos Startup Expo in June? Visit this website here.
- Lagos Business School is looking to fill several positions. Apply here.
- Pulse Africa is looking for a Motion Graphics Video Editor Business Insider Africa. Apply here.
- Ecobank Nigeria is looking for a Senior Software Engineer (Java). Apply here.
- Honeywell is looking for a Senior Account Manager. Apply here.
- Glovo is looking for a Brand Partnership Lead. Apply here.
- Marvin Records is looking for a Senior/Lead Business Development Manager. Apply here.
- PalmPay has several openings. Apply here.
- Moove is hiring. Apply here.
- Moniepoint is hiring for several positions. Apply here.
- Building a startup can feel isolating, but with Equity Merchants CommunityConnect, you can network with fellow founders, experts, and investors, gaining valuable insights and exclusive resources to help you grow your business. Click here to join.
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Have a lovely Tuesday!
Victoria Fakiya for Techpoint Africa.
