DCI summons Nairobi acting Governor Kananu over tax row at County
The Directorate of Criminal Investigations (DCI) has summoned Nairobi Deputy Governor Ann Kananu and other county finance officials over tax avoidance.
She is expected to answer question this Wednesday where DCI officers in charge of tax have found out that the country failed to remit income tax, Pay As You Earn (PAYE) and withholding tax.
Purity Nkiiri DCI officer in charge of KRA Unit said she has reasons to believe the DG and other two officials are either connected with the said offence or have useful information that may assist in investigations, according to a report by The Star.
“In the exercise of the powers conferred to me under the provision of Section 52 (1) of the National Police Act of 2011, I do hereby summon you to appear before me,” reads the letter in part addressed to Kananu.
They are expected to appear before Nkiiri on Wednesday, October 27 at 10:00 am.
” Please note that failure to honour this summon will render you liable to prosecution under section 52(2) of the National Police Act of 2011,” reads the letter.
The County has been facing a cash crunch that has caused a delay in payment of salaries and submission of statutory deductions for its employees.
In a letter submitted to the assembly on August 2, 2021, Finance CEC Allan Igambi said the Kananu-led administration was unable to pay salaries for July due to a delay in uploading of the budget for the financial year ending June 30, 2022.
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The county assembly then approved the executive’s request to make a deal with a local bank to access some of the much-needed cash.
The cash crunch also resulted in a two-day go slow at City Hall due to delayed salaries and promotions.
Other issues raised by workers were failure to promote county staff, with at least 400 of them qualified for promotion.
The issue of non-remittance of statutory deductions and non-payment of overtime and other allowances was also raised.
KRA took over from JamboPay, which City Hall had contracted in 2014 to collect revenue.