The Kenya Revenue Authority (KRA) and former Nairobi governor Evans Kidero have reached a resolution in a 427 million shillings’ tax dispute.

As per the terms stipulated in the agreement, the former Nairobi governor is obligated to remit Sh19.4 million to the tax authorities.

This revised sum encompasses the primary tax amount of Sh12,038,982 million, a penalty of Sh2,407,796, and interest totaling Sh5,036.405 million.

The origins of this dispute dates back to 2016 when Evans Kidero received a tax bill from the Kenya Revenue Authority (KRA) amounting to Sh680 million, inclusive of fines and interest.

This came about after an examination of his business operations and financial documentation spanning from January 2011 to December 2015.

However, Evans Kidero, the former governor of Nairobi, argued that the funds primarily constituted campaign contributions.

Following a favorable ruling by the tax appeal tribunal in Kidero’s favor, the Kenya Revenue Authority (KRA) appealed to the Supreme Court.

The Supreme Court determined that Kidero couldn’t substantiate that the funds had originated from his campaign accounts.

Consequently, the Supreme Court allowed the KRA to recover the contested funds.

Kidero in court again

Last week, Kidero and 12 others faced renewed charges of defrauding Nairobi City County of Sh58 million.

On September 1, 2023, the court brought Kidero, former Embakasi Central MP John Ndirangu Kariuki, and eleven others to face charges of defrauding City Hall of Ksh58 million nine years ago.

Before Chief Magistrate Felix Kombo at Milimani Anti-Corruption Court, Kidero and co-accused individuals pleaded not guilty to fifteen charges.

These charges included conspiring to commit economic crime, abusing their authority, unlawfully acquiring property, and engaging in money laundering.

The court charged Kariuki with unlawfully receiving Ksh8.9 million from the late advocate Stephen Kariuki Mburu, a former partner at Wachira, Mburu, Mwangi, and Company Advocates.

Both Kidero and Kariuki, the latter also a former mayor of the Nairobi City Council, faced accusations of engaging in an illicit arrangement to acquire a piece of land with the LR.. No 10874/1160 (originally numbered 10874/17/2), which had an estimated value of Ksh 25,735,000.