Nairobi County wins tax dispute against KRA, KSh 8.3 billion claim quashed
via Tuko1 min read
The Tax Appeals Tribunal has ruled in favor of Nairobi City County, setting aside the majority of an KSh 8.3 billion tax demand from the Kenya Revenue Authority KRA. The dispute involved PAYE, withholding taxes, VAT, and statutory levies for the period between 2019 and 2023. The Tribunal found that KRA's assessment was largely unjustified and did not adequately consider reconciliations and supporting documents provided by the county government. It also noted that KRA disregarded joint reconciliation findings previously agreed upon by both parties. Nairobi County had argued that the assessment included duplicated invoices, voided transactions, exempt supplies, internal transfers, and amounts already remitted. The Tribunal upheld only the NITA levy component and affirmed a reconciled tax liability of KSh 130.7 million, which had been jointly agreed upon during earlier reconciliation meetings.
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This summary was AI-generated from a story originally published by Tuko.
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