Kiambu County Government must pay Sh156 million in taxes to the Kenya Revenue Authority (KRA) after the Tax Appeals Tribunal dismissed its appeal as invalid. The tribunal ruled that the county had initially agreed to pay part of the disputed taxes but later failed to honor the arrangement.
The tax dispute arose from an audit that initially demanded Sh612 million, later revised to Sh319.3 million for PAYE and VAT, and Sh54 million for withholding taxes. Despite making partial payments, the county challenged KRA’s claims, arguing that certain transactions were not taxable. However, the tribunal upheld KRA’s position, reinforcing the county’s obligation to settle the outstanding taxes.
