This archive report was first published on 7 September 2019.
On September 7, 2019, Kenya Revenue Authority (KRA) officials reached an agreement with the Nairobi City County Government over a Sh5.8 billion tax demand. The county government agreed to make a part payment of the amount owed to KRA.
The county government was summoned by KRA to appear before the tax tribunal over non-payment of tax. The taxes in question include statutory Pay As You Earn (PAYE) Income Tax, Withholding Income Tax, and Withholding VAT.
According to KRA, some of the tax arrears were accrued during the previous county government's leadership. The county government also agreed to ensure timely remittance of withholding taxes, which has been a major issue affecting suppliers who file their returns.
David Yego, the commissioner for investigations and enforcement at KRA, stated, 'KRA is committed to building taxpayers' trust through facilitation to foster compliance with tax and customs legislation. Taxpayers are encouraged to pay their taxes in time and remain compliant with tax laws in order to avoid punitive enforcement actions, including prosecution.'
Seven governors were recently summoned by KRA over non-payment of taxes. Among them were Ferdinand Waititu and Amason Kingi, who owe KRA Sh3,216,613,189 and Sh2,059,410,078 respectively.
