Sonko strikes deal with KRA over contentious Ksh 3.5 billion tax bill

By Erick Ludeya

The Kenya Revenue Authority has reached agreement with the Nairobi City County Government over settlement of the contentious Ksh3.5 billion tax bill.

Nairobi Governor Mike Sonko on Wednesday confirmed that the two entities agreed that the Agency notice against the county be uplifted immediately.

In the agreement, the county has committed to make an immediate payment of Ksh 242 million owed in taxes and collection charges, pending a comprehensive audit and reconciliation that will be concluded in the next ten days.

The County had paid Sh3 billion last year as part of the Ksh 5.8billion arrears incurred by previous administrations.

The agreement was sealed with the Commissioner for Domestic Taxes, Elizabeth Meyo, the Deputy Commissioner in charge of Accounts Management, Daniel Kagira, and representatives from the Public Sector Division and Enforcement Division of KRA, led by Commissioner Stephen Kyande.

“KRA commended my administration’s commitment to our tax obligations, especially the 3 billion shillings we paid last year owing to tax arrears incurred by previous administrations,”

The authority held talks with the governor in September last year where it was determined that most of the arrears were accrued by the previous regimes