NAIROBI, Kenya – The Kenya Revenue Authority (KRA) has moved to recover Sh623.39 million in alleged unpaid taxes from former Nairobi Governor Mike Sonko by directing First Community Bank to surrender money it holds on his behalf or owes him.
In a notice dated October 12, 2026, the tax authority appointed the bank as an agent for tax recovery, instructing it to remit the funds towards settling the claimed tax liability.
The notice puts the total amount sought at Sh623,389,105, comprising Sh308.92 million in principal tax, Sh15.76 million in penalties and Sh298.72 million in interest.
The alleged arrears relate to the period between January 2015 and December 2019.
KRA Invokes Tax Procedures Act
KRA invoked Section 42 of the Tax Procedures Act, 2015, which allows the authority to appoint a third party holding money for a taxpayer, or owing money to that taxpayer, as an agent for recovering unpaid taxes.
Under the notice, First Community Bank was directed to remit any funds held on Sonko’s behalf towards the outstanding amount and provide a return detailing the money in its possession.
The agency notice forms part of KRA’s legal mechanism for pursuing tax debts through funds held by banks and other third parties.
Bank Warned Of Personal Liability
The authority cautioned the bank that failure to comply with the notice without reasonable cause could expose it to personal liability for the amount specified.
KRA said the notice would remain in force until the full amount had been recovered, even where payments were made in instalments or only part of the claimed debt was settled.
“Please note in case of partial payment, this notice shall remain in force until the amount specified herein is fully recovered. Section 42(13) of Tax Procedures Act 2015 provides that, if without reasonable cause you fail to comply with this Agency Notice, you shall be personally liable for the amount specified herein,” the authority stated.
The provision places a compliance obligation on the appointed agent and allows KRA to pursue the specified amount where the agent fails to comply without reasonable cause.
