Nairobi commits to paying Sh5.8bn taxes owed to KRA

The Nairobi government has committed to paying part of the Sh5.8 billion it owes to the Kenya Revenue Authority in taxes.

The county sought to be allowed to immediately make the first payment as a show of good faith in its attempt to regularise all tax matters.

On Thursday last week, the county team, led by Governor Mike Sonko, appeared at KRA offices in Upperhill. Acting county secretary Leboo Mornitat, Finance executive Charles Kerich and chief finance officer Halkano Waqo accompanied the governor. 

The two sides agreed that the county remains up to date on remittance of withholding taxes. The authority took the county team through a chronology of events that led to the accumulation of the debt and details of compliance efforts and enforcement actions taken.

The taxes yet to be remitted include Pay As You Earn, Income Tax, Withholding Income Tax and Withholding VAT.  It was noted that part of the debt accrued during the previous county administration.

KRA informed the county government that its failure to remit withheld taxes has subjected suppliers to complications as they file their returns.

In recent days, the authority has focused on counties after a few were found guilty of deducting taxes from employees but failing to submit to the authority.

Other governors who have faced the taxman are Migori's Okoth Obado over Sh1.3 billion unsettled tax, Kilifi's Amason Kingi over Sh2 billion and Kiambu's Ferdinand Waititu over Sh2 billion.

The authority says it will not abate prosecution of taxpayers for an offence under the tax law, despite payment of taxes as required under Section 108 of the Tax Procedure Act, 2015. It said it will to continually improve service delivery and revenue collection.

(Edited by F'Orieny)