Former Nairobi Governor Evans Odiambo Kidero and the Kenya Revenue Authority have settled a tax dispute worth 427 million shillings.
The former Nairobi boss will now be required to pay Ksh.19.4 million shillings under the terms of the agreement.
The Ksh.4247M was reduced to Ksh.19.4M, which included the principal tax of 12,038,982 million shillings, a penalty of 2,407,796 shillings, and interest of 5,036.405 million shillings.
Kidero had been ordered to pay tax amounting to 427,269,795.00 million shillings
The dispute began in 2016, when the KRA audited Kidero’s financial and business accounts from January 2011 to December 2015 and issued him a 680 million shilling tax bill that included penalties and interest.
He challenged the taxation at the tax appeals tribunal, claiming that 423 million Shillings of the money were campaign donations.
However, after the tribunal ruled in favor of Kidero, the taxman appealed to the Supreme Court, which ruled that he lacked proof that the money came from his campaign accounts and allowed the KRA to collect the disputed amount.
