KRA seeks Sh480m from city finance chief after talks fail

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The Kenya Revenue Authority says it has raised its claim to Sh480 million from an initial demand of Sh98 million after studying Jimmy Kiamba’s undeclared income between 2007 and 2013.

The Kenya Revenue Authority (KRA) has increased the amount it is claiming from suspended City Hall finance chief Jimmy Kiamba following failed out-of-court negotiations.

The taxman on Tuesday told Justice Fred Ochieng’ that it has raised its claim to Sh480 million from an initial demand of Sh98 million after studying Mr Kiamba’s undeclared income between 2007 and 2013.

Mr Kiamba had asked Justice Ochieng’ to limit the freeze order on his accounts to Sh98 million but KRA opposed the request, arguing that a deeper look into his finances revealed that he owed a larger amount in unpaid taxes.

The taxman, after filing the suit last month, obtained temporary orders freezing Mr Kiamba’s 10 bank accounts pending the hearing.

KRA wants the accounts to remain frozen until a full assessment of Mr Kiamba’s finances is completed and the final amount he owes is determined.

“The claim is not for Sh98 million, it is for Sh480 million for the financial years 2007 to 2013. Therefore, there should be no variation of the temporary orders freezing Mr Kiamba’s accounts. I concede that in the application we had not cited the figure of Sh480 million,” said KRA lawyer Okello Ogello.

READ: KRA obtains orders freezing City Hall CFO bank accounts

Justice Ochieng’ extended the temporary orders to August 14 when he will hear the matter.

Five of the accounts are with CfC Stanbic Bank while two others are held at the Co-operative Bank. He also operates one account each at Standard Chartered Bank, Equity Bank and Gulf African Bank.

The Ethics and Anti-Corruption Commission (EACC) is also investigating Mr Kiamba over suspicion that he is involved in corrupt dealings.

The EACC says its pursuit of Mr Kiamba has revealed a massive empire that is not reflective of his known income and wants the High Court to freeze his bank accounts as investigations into claims that he stole millions of shillings from City Hall between January and November last year continue.

Mr Ogello had in his application said KRA is still reviewing Mr Kiamba’s income between 2006 and 2009 to establish how much he owes. KRA is also targeting eight properties belonging to Mr Kiamba, all valued at Sh366 million.

EACC last month lost its bid to extend a freeze of two of the accounts held with CfC Stanbic.