KRA Seeks Ksh 473M From Lugari MP Ayub Savula's Company

  • Lugari MP and Amani National Congress Party member, Ayub Savula
    Lugari MP and Amani National Congress Party member, Ayub Savula
  • Kenya Revenue Authority (KRA) seeks to obtain Ksh473 million from a publication belonging to Lugari MP Ayub Savula over claims of unpaid taxes accruing from a period of four years.

    Reports show that Savula's publication, Sunday Publishers, had secured contracts between 2013 and 2017- the stipulated period in question.

    Savula had gone to court to prevent the tax authority from seizing his assets, as ordered by the Tax Appeal Tribunal.

    Kenya Revenue Authority signage on a building
    Kenya Revenue Authority signage on a building

    He confirmed to the court that he had paid Ksh3 million and was willing to pay another Ksh3 million to the tax authority.

    The legislator, in his defense, had argued that due to the publication facing numerous legal suits, it was forced to shut down.

    He argued that due to this, the company didn't have any liquidity in order to pay the security in one installment.

    However, after reviewing the case, High Court Justice David Majanja ruled that Savula had to get a bank guarantee of Ksh10 million within the next 45 days in order to prevent KRA from seizing his assets.

    "In any case, I find that the security of Ksh3 million being proposed by the appellant (Savula) insufficient and too low considering the tax liability at stake.

    "Security of Ksh 10 million in the form of a bank guarantee from a reputable bank would be the most appropriate taking into account the circumstances of the case, Majanja ordered.

    The MP has been on the spot after the tax authority raised concerns of his company allegedly dodging taxes during a four-year period.

    This led to investigations carried out by KRA in a bid to compel Savula to pay Ksh473 million accrued during the stipulated time.

    KRA offices in Nairobi.
    A file image of the reception area at KRA offices in Nairobi.
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