Mike Sonko among 7 Governors Sought by KRA in Tax Default Case

Nairobi Governor Mike Mbuvi Sonko will be questioned today, 5^th September 2019, by the Kenya Revenue Authority (KRA) officers over allegations of failure to remit over 4.5 billion shillings in taxes.

Mike Sonko, who is also facing allegations of corruption that touch on garbage collection tenders, was grilled yesterday, on 4^th September 2019, by the Ethics and Anti-corruption Commission.

Mike Sonko was grilled after EACC findings traced 20 million shillings meant for garbage tenders in one of the Governors accounts.

Nairobi County together with six other counties failed to remit 13 billion shillings of taxes despite having deducted the taxes on their side.

The 13 billion shillings of taxes, according to the KRA, was deducted but was never remitted to the taxman.

Taxes accrued by the Counties include tax due from payments that have already been made to county service providers and contractors but the taxes are yet to be remitted which include Value Added Tax (VAT) and Income tax on profits.

The seven Governors as listed:

• Nairobi – Mike Mbuvi Sonko
• Migori – Okoth Obado
• Homa Bay- Cyprian Awiti
• Turkana- Koli Nanok
• Kilifi – Amason Kingi
• Murang’a – Mwangi wa Iria
• Kiambu- Ferdinand Waititu

The seven governors will be the first group of leaders to appear before the Tax Dispute Resolution Division which is located at the Ushuru Pension Towers in Upper Hill, Nairobi.

Nairobi Governor Mike Sonko is expected to explain why his County is yet to submit 4.5 billion shillings of taxes to the authority.

KRA has noted that the six counties, with the exception of Nairobi, owe 8.8 billion shillings collectively and respectively as listed below:

• Kiambu County – 3,216,613,189 shillings
• Kilifi County – 2,059,410,078 shillings
• Migori – 1,300,000,000 shillings
• Murang’a – 1,021,174,037 shillings
• Homa Bay – 765,718,819 shillings
• Turkana – 455,634,523 shillings

The Nairobi Governor is also expected to explain the whereabouts of taxes deducted from County employees in form of PAYE and from suppliers in form of Withholding tax which have never been surrendered.

KRA claims Sonko risks prosecution for failing to comply with the law as is his role as the County boss which would throw the Nairobi County into a crisis considering that it has no Deputy Governor.

Sonko, however, defended his administration saying the amount claimed arose from the previous administration but the taxman was frustrating efforts from his office to come into an arrangement that will see the dues settled.

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