Former Nairobi Governor Mike Mbuvi Sonko suffered a major setback after losing a KSh 385 million tax dispute with the Kenya Revenue Authority (KRA), driven largely by a failure to produce complete financial records and transaction documentation.
The KRA issued tax assessments totaling KSh 385 million, citing unpaid income tax and income disparities.
The tribunal/court faulted the politician for failing to supply books of account, bank transaction receipts, or supporting financial records to disprove KRA’s assessment.
Under tax procedures law, the burden lies on the taxpayer to prove that an assessment by the revenue agency is incorrect or excessive. Without verifiable records, KRA’s figures were upheld.
Tax authorities maintain authority to assess income based on banking records and indirect auditing methods when primary financial books are unavailable.
Taxpayers challenging an assessment must present complete, auditable receipts and financial ledgers; unsubstantiated verbal or written objections hold no standing against KRA assessments.
