This archive report was first published on 22 November 2019.
On November 22, 2019, the Kenya Revenue Authority (KRA) secured a significant victory in court, winning a share of the Ksh4.4 billion insurance payout to Westgate Mall.
The payout was made by Kenindia Insurance following a devastating terrorist attack in 2013.
Sony Holdings Limited, the mall's owners, had attempted to block the taxman's demand for Sh221 million in taxes from the terror attack compensation and Sh159 million in tax arrears for 2016.
However, High Court judge John Mativo quashed the application by Sony Holdings, ruling that the owners had failed to prove that KRA had acted in bad faith and that the tax claim was illegal.
According to the court ruling, the taxman was entitled to a share of the Sh1.2 billion after deduction of operation expenses from Sh3.1 billion paid as compensation for damage to the mall and a further Sh1.2 billion as compensation for loss of rent during the period the shopping complex in Nairobi's Westlands area remained closed.
