KRA moves to recover Ksh.623 million in alleged tax arrears from Mike Sonko

In a notice dated October 12, 2026, the tax authority appointed the bank as an agent for tax recovery, directing it to remit funds held on behalf of Sonko, or any money owed to him, towards settling the claimed tax liability.

The notice puts the total amount sought at Ksh.623,389,105, comprising Ksh.308.92 million in principal tax, Ksh.15.76 million in penalties and Ksh.298.72 million in interest.

The alleged tax arrears relate to the period between January 2015 and December 2019.

KRA invoked Section 42 of the Tax Procedures Act, 2015, which allows the authority to appoint an agent to recover tax debts from money held by a third party for a taxpayer or payable to the taxpayer.

The bank was also directed to provide a return detailing any money it holds on Sonko's behalf.

KRA warned that failure to comply with the notice without reasonable cause could expose the bank to personal liability for the amount specified.

"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 taxman warned.