Former Nairobi Governor and NEPD party leader Mike Sonko./SCREENGRAB
Former Nairobi Governor Mike Sonko has vowed to challenge a Sh385 million tax liability after the Tax Appeals Tribunal declined his case against the Kenya Revenue Authority (KRA).
Sonko says he will move to the High Court, arguing that the tribunal did not adequately consider evidence explaining the source of money that flowed through his bank accounts over several years.
“I am not giving up on this matter. I will take the fight to the High Court because I believe I have sufficient evidence to demonstrate that these funds were not undeclared taxable income,” Sonko said.
The dispute centres on about Sh1.4 billion deposited into 11 accounts associated with Sonko between 2013 and 2019.
KRA examined the transactions and subsequently raised a tax assessment after concluding that some of the money represented income that had not been declared for tax purposes.
Sonko has disputed that interpretation, maintaining that the transactions represented different sources of funds and could not collectively be classified as taxable earnings.
He says the deposits included money generated from commercial activities, loans and property transactions, among other sources. The former governor has particularly pointed to the sale of several parcels of land along the Kenyan coast as part of the explanation for the funds.
“The Sh1.4 billion in question did not simply appear in my accounts. There were legitimate transactions behind the money, including proceeds from the sale of property, business dealings and loans. I will provide the necessary documentation to demonstrate the source of these funds,” he said.
KRA, however, maintained that Sonko had not produced adequate documentation to establish the nature of the deposits and distinguish taxable income from other financial inflows.
The tribunal sided with the revenue authority, finding that Sonko had not done enough to displace the taxman's assessment.
The decision leaves Sonko facing a Sh385 million tax bill, although he has signalled that the tribunal's ruling will not end his challenge.
“I respect the decision of the tribunal, but I disagree with its findings. My position is clear: I have nothing to hide, and I am prepared to pursue every legal avenue available to prove my case and challenge KRA’s assessment,” Sonko said.
His intended appeal will shift the dispute to the High Court, where he will seek to persuade the court that the money identified by KRA was wrongly treated as taxable income.
The case is rooted in financial transactions dating back more than a decade, covering a period during which Sonko rose to prominence in Nairobi politics and subsequently served as governor.
