KRA ordered not to collect Ksh.427 million from Kidero pending hearing

Kidero loses court case to KRA over Ksh.423 million campaign fund

Former Nairobi Governor Dr. Evans Kidero got a reprieve after the court suspended an order requiring the Kenya Revenue Authority (KRA) to retrieve Ksh..427 million tax arrears.

Justice David Majanja stopped the order where KRA was due to collect the cash, pending the hearing and determination of an appeal filed by Kidero at the Court of Appeal.

The hearing is set for March 1, 2022.

“pending the hearing of the application, an order be and is hereby issued suspending execution of the judgment and decree issued on February 4 which granted KRA permission to recover Ksh427,269,795 from the applicant,” ruled justice Majanja.

The dispute dates back to 2016 when KRA conducted an audit of Kidero’s financial and business accounts for January 2011 to December 2015 income period and handed him a Ksh.680 million tax bill that included penalties and interests.

The large deposit of Ksh.423 million into Kidero’s personal account raised concern and was flagged by the KRA.

David Majanja, a High Court judge ruled that the governor had failed to defend his allegation that the money had been donated by a well-wisher and was actually utilized for the same purpose during his fight for the gubernatorial seat in the 2017 campaigns against Mike Sonko.

Audits carried out by the Commissioner established that the proceeds from fundraisers by the former governor were being deposited together with other business proceeds into his personal bank accounts.

When tasked to avail a bank account for his campaign funds, Dr. Kidero furnished the Commissioner with names of various contributors and a single-page document titled ‘Statement of Receipts and Expenditure’ indicating the monies received and expended on various items.

Kidero wants the Court of Appeal to overturn the decision which he claims is inaccurate and is meant to punish him while leaving other politicians who have not been told to account for their campaign funds.

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