This archive report was first published on 29 October 2021.
On October 27, 2021, Nairobi's Acting Governor Ann Kananu and three county officials received a summons from the Directorate of Criminal Investigations (DCI) attached to the Kenya Revenue Authority (KRA) over a Sh3.4 billion tax debt.
According to the summons, the officials were being investigated for failure to remit income tax, withholding tax, and PAYE contrary to Section 97 of the Tax Procedures Act.
However, Kananu and the officials argue that the criminal process is being used to embarrass them in a matter that is actively being negotiated by the county government and KRA.
Through their lawyer, Thomas Letangule, they claim that the DCI is using the criminal process as a tool to vex them, settle scores, vilify, and demonstrate muscle.
They also argue that KRA has no evidence to support the allegations and that the process being undertaken against them is malicious and an abuse of the court process.
Ann Kananu revealed that the tax arrears of Ksh2.1 billion accumulated since 2011, and that the county government committed to making monthly deposits of Ksh250 million to the taxman in July 2021.
She stated that the county has so far made a deposit of Ksh1.3 billion and intends to honor the remaining debt by making payments in installments.
