Mr Jimmy Kiamba: Not yet, judge tells former City Hall finance chief. PHOTO | FILE
What you need to know:
The KRA sued Mr Kiamba in June last year for failing to fully declare and pay taxes in the last eight years despite earning more than Sh1 billion.
The KRA suspects that Mr Kiamba kept his earnings secret to avoid remitting taxes.
Mr Kiamba is also under investigation by the Ethics and Anti-Corruption Commission (EACC) for alleged embezzlement of funds.
Former City Hall chief finance officer Jimmy Mutuku Kiamba’s bank accounts will remain frozen until a dispute with the Kenya Revenue Authority (KRA) over Sh480 million in unpaid taxes is determined.
Justice Fred Ochieng’ on Wednesday dismissed an application by Mr Kiamba seeking to unfreeze his bank accounts in exchange for three properties to be used as security, pending the determination of the dispute with the taxman.
The judge said Mr Kiamba had not provided valuation reports for the land he intended to use as security.
The KRA sued Mr Kiamba in June last year for failing to fully declare and pay taxes in the last eight years despite earning more than Sh1 billion.
The KRA suspects that Mr Kiamba kept his earnings secret to avoid remitting taxes.
Mr Kiamba is also under investigation by the Ethics and Anti-Corruption Commission (EACC) for alleged embezzlement of funds.
The EACC suspects that Mr Kiamba stole public funds from City Hall as he deposited more than Sh400 million between January and November 2014 despite earning just Sh85,000 monthly as City Hall CFO.
“Whilst I appreciate that Mr Kiamba may be undergoing serious financial challenges because he cannot access money in his accounts, the justice of the case militates against release of the funds at the moment. The only other real properties belonging to Mr Kiamba appear to have been utilised as security for a substantial loan, which was borrowed from Equity Bank,” the judge ruled.
Mr Kiamba’s accounts had a balance just more than Sh114 million when they were frozen last year.
The EACC is also investigating Mr Kiamba over suspicion that he is involved in corrupt dealings.
The KRA, while investigating Mr Kiamba’s income, discovered that the former City Hall accountant had 10 bank accounts.
Mr Kiamba’s estate includes two maisonettes in South C, a plush town house in Kileleshwa, four apartments in Kilimani and eight plots in Muthaiga, Mavoko and Machakos. He also owns six cars.
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.
Justice Ochieng’ further ordered that the tax agency and Mr Kiamba use alternative dispute resolution mechanisms, an initiative aimed at reducing the number of court cases, to resolve the matter.
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