Taxman wants Sh4.7 billion from City Hall
Nairobi Governor Evans Kidero speaks during the launch of the Resilient Cities workshop at City Hall on December 5, 2016. He has stopped another construction on a disputed land in Lavington.PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- Banks holding the government’s cash will have to remit the money owed to the taxman as agreed by the two.
- The county said some of its debts were inherited from the previous local government.
The Kenya Revenue Authority (KRA) has demanded Sh4.7 billion in statutory deductions from the Nairobi County government.
Banks holding the government’s cash will have to remit the money owed to the taxman as agreed by the two.
Sources say the notice from the revenue authority was issued on Wednesday and City Hall lawyers held meetings to forestall the freezing of some of their accounts.
On Thursday, the taxman confirmed that they had issued a demand against the Nairobi government.
“The matter is also under discussion on the best payment plan to be agreed by both parties,” Mr Benson Korongo, Commissioner for Domestic Taxes, said.
While the revenue authority said the amount owed could not be revealed “due to the law which protects taxpayer’s confidentiality”, finance executive Gregory Mwakanongo said the county owed Sh4.7 billion.
This comes at a time when City Hall County Fiscal Strategy Paper, Financial Year 2017/2018, states that the debts owed to different parties by June 30, 2016 was Sh48.97 billion.
The county said some of its debts were inherited from the previous local government.
“We inherited substantial debts from the former City Council of Nairobi that has continued to pose serious liquidity problems in the county,” Mr Mwakanongo said.
Nairobi Governor Evans Kidero recently said that the national government owed City Hall Sh62 billion accrued from land rates.
