Former Nairobi Governor Mike Sonko has won a temporary reprieve after the Tax Appeals Tribunal directed the Kenya Revenue Authority (KRA) to lift agency notices that had frozen his bank accounts.
The Tribunal ordered KRA to immediately remove the notices placed on Sonko’s accounts at Equity Bank and Co-operative Bank, pending the outcome of an ongoing tax dispute.
In its ruling, a panel chaired by Hon. Dr. Rodney Oluoch found that the taxes forming the basis of the agency notices were still under dispute and therefore could not be enforced at this stage as outlined under Section 52(2) of the Tax Procedures Act.
“The taxes subject to the said agency notices are disputed and not yet determined, hence not collectable pending the hearing and determination of this appeal,” the Tribunal stated.
Sonko’s lawyers argued that KRA acted prematurely and unlawfully by issuing the notices, which effectively froze millions of shillings in his accounts. The Tribunal agreed, granting the former governor temporary relief as the main appeal continues.
With the ruling, Sonko can now access his funds while the Tribunal examines the merits of his challenge against KRA’s tax assessments.
