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Kananu snubs DCI summons over City Hall's Sh2.1bn tax arrears

NAIROBI
By Josphat Thiong'o | October 27th 2021

Nairobi Deputy Governor Anne Kananu at the KICC grounds on December 15, 2021. [Samson Wire, Standard]

The Director of Criminal Investigations (DCI) George Kinoti is after Nairobi Deputy Governor Anne Kananu over failure by City Hall to remit Sh2.1 billion in tax.

But on a day Kananu was expected to honour summons at DCI, she was busy hosting Jamaican songbird Etana who is in the country.

The musician is scheduled to perform at the Pamoja Festival on October 30.

Kananu chose to remain in her office yesterday where she exchanged pleasantries and gifts with the songstress. She was gifted with an “Ak-47” branded t-shirt that symbolised her name Anne Kananu and the number of Nairobi county, 047. The acting governor gifted Etana with a yellow Maasai shawl and a rungu.

Kananu did not appear before DCI forcing the detectives to be postponed the planned grilling session.

On Tuesday, DCI summoned the acting governor, Finance Council Executive Committee (CEC) member Allan Igambi and former Finance chief officer Halkano Waqo to their Upper Hill offices to shed more light on the funds.

The trio was expected to appear yesterday at 10 am before DCI officer-in-charge of Kenya Revenue Authority (KRA) unit Purity Nkiiri, at the CBC building.

Through a letter, Nkiiri said she was probing a case involving City Halls’ failure to remit income tax, withholding tax, and PAYE contrary to Section 97 of the Tax Procedure Act.

She said she had reason to believe that the three are either connected to the offence or have useful information that may assist in investigations.

"In the exercise of the powers conferred to me under the provision of Section 52 (1) of the National Police Act of 2011, I do hereby summon you to appear before me," read the letter in part dated October 26.

Nkiiri also notified the trio that failure to honour the summons would render them liable to prosecution.

"Please note that failure to honour this summon will render you liable to prosecution under section 52(2) of the National Police Act of 2011," read the letter.

According to data, The Standard is privy to, the huge tax arrears accumulated from the withholding tax deducted from the employees and suppliers to the county but were not remitted to the government as required by law.

Notably, KRA commenced revenue collection for the Nairobi county government in line with a February 2020 gazette notice following the Deed of Transfer agreement that saw City Hall cede four functions to the Nairobi Metropolitan Service (NMS). Under the deal, revenue collection was abdicated to KRA.

The gazette notice provided KRA officers with full and unlimited access to the county revenue processes, information data, and systems. This included and was not limited to the records and documents necessary for the effective execution of its mandate.

By the time of going to press, Kananu was yet to respond to our queries on the matter.

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