Nairobi ex-Governor Evans Kidero gets Sh400m tax waiver
![Evans Kidero](/resource/image/4358104/landscape_ratio2x1/320/160/e6ba3b129f2582d9d375f149ab99903a/wl/evans-kidero.jpg)
Former Nairobi governor Dr Evans Kidero. He has received a Sh407 million tax waiver in a tax arrears dispute following an out-of-court settlement with KRA.
Former Nairobi governor Evans Kidero has received waiver in a Sh427 million tax arreas dispute following an out-of-court settlement.
In a signed settlement agreement filed at the country's second-highest court, Dr Kidero was granted a waiver of Sh407,780,612 by Kenya Revenue Authority (KRA).
From the registered agreement, the former governor will only pay a paltry Sh19,989,183 out of the total of Sh427,269,795 demanded by the taxman
Dr Kidero agreed to pay a revised amount of Sh19,489,183, comprising the principal sum of Sh12,038,982, a penalty of Sh2,407,79876 and interest of Sh5,036,405.
In the case, the court adopted an out-of-court settlement agreement between Dr Kidero and the KRA Commissioner of Investigations and Enforcement.
In the agreement recorded at the Court of Appeal, Dr Kidero and KRA agreed that he would pay Sh19 million, which includes a penalty of Sh2,407,796 and interest of Sh5,036,405 million.
Dr Kidero had renegotiated the colossal tax waiver of Sh427 million that KRA had demanded he pay for the period 2011, 2012 and 2015.
According to the agreement filed in court, Dr Kidero was allowed to pay Sh12,038,942 on August 23, 2023, which is the main tax claim following the audit.
The dispute began in 2016 when KRA audited Kidero's financial and business accounts from January 2011 to December 2015 and issued him with a tax bill of Sh680 million, including penalties and interest.
He challenged the tax at the Tax Appeals Tribunal, arguing that Sh423 million of the money claimed was a campaign donation.
However, after the tribunal ruled in Dr Kidero's favour, the taxman appealed to the High Court, which ruled that he had failed to prove that the money came from his campaign accounts and allowed the KRA to collect the disputed amount.
Dr Kidero then appealed the ruling.