KRA Targets Mike Sonko's Bank Funds in KSh623 Million Tax Recovery Push

NAIROBI, Kenya — Nearly half of the KSh623.39 million that the Kenya Revenue Authority (KRA) is seeking from former Nairobi Governor Mike Sonko is interest, as the taxman moves to recover alleged unpaid taxes dating back to 2015.

KRA has issued an agency notice to First Community Bank, directing the lender to surrender money it holds on Sonko's behalf, or owes him, towards the claimed tax liability.

The notice, dated October 12, 2026, puts the total demand at KSh623,389,105. It covers individual income tax for the period between January 2015 and December 2019.

The move shifts the focus from the amount claimed to the money that can actually be recovered through the bank. The notice does not establish how much money the lender holds for Sonko or whether the available funds are sufficient to meet the demand.

How KRA arrived at the KSh623 million figure

The tax authority's demand comprises three components:

Principal tax: KSh308,916,928.
Penalties: KSh15,756,912.
Interest: KSh298,715,265.

Interest accounts for about 48 per cent of the total amount sought, making it almost as large as the principal tax liability.

The breakdown illustrates how a tax claim can grow considerably when interest accumulates over time. However, the notice alone does not explain the circumstances behind the original assessment, whether Sonko has disputed the amount, or whether any payments have previously been made.

KRA has not publicly explained in the notice how it calculated the individual components beyond listing the amounts sought.

Why First Community Bank has been drawn into the dispute

Rather than relying solely on a direct demand to Sonko, KRA has invoked Section 42 of the Tax Procedures Act, 2015, which provides a mechanism for recovering unpaid taxes through a third party holding money for a taxpayer or owing money to them.

Under this arrangement, a bank or another party can be appointed as a tax recovery agent and required to remit qualifying funds towards the outstanding liability.

The notice directs First Community Bank to disclose money held on Sonko's behalf and pay the amount required under the notice, subject to the funds and obligations covered by the law.

KRA has also warned that the notice will remain in force if only part of the amount is recovered.

The authority cited the law's provision on liability for failure to comply, warning that a failure without reasonable cause could expose the agent to personal liability for the specified sum.

The notice states that “without reasonable cause you fail to comply with this Agency Notice” could trigger that liability.

The provision gives the tax authority a route to pursue recovery through third parties. It does not, however, mean that the bank automatically owes the entire amount simply because it has received the notice. The bank's obligations depend on the law and the money it holds or owes in the circumstances covered by the notice.

What the notice means for Sonko

The agency notice marks a formal recovery step, but it should not be confused with a court judgment on the merits of a tax dispute.

The notice records KRA's position that the stated amount remains outstanding and sets out the recovery action it is taking. It does not, by itself, provide a complete account of any objections, appeals or other proceedings that may concern the underlying tax assessment.

Kenya's tax laws provide mechanisms for challenging certain tax decisions. Whether any such challenge has been made in this case has not been established by the notice.

Sonko's response to the latest recovery action was not available in the reports reviewed for this story. The circumstances behind the assessment, including any explanation from him concerning the claimed liability, therefore remain unclear.

The amount sought is substantial, but the notice does not provide a basis for drawing conclusions about Sonko's current finances or the funds available at the bank.

What happens next?

The immediate question is how much of the claimed liability can be recovered through First Community Bank.

If the bank holds sufficient money within the scope of the notice, those funds may be applied towards the amount sought. If only part of the amount is recovered, KRA says the notice will remain active until the specified liability is settled.

The authority's action also highlights the importance of distinguishing between an assessment, a recovery notice and a final resolution of a dispute. Each represents a different stage in the tax collection process.

For now, KRA is seeking KSh623.39 million in alleged unpaid taxes, penalties and interest. The notice confirms the recovery action, but the final amount collected, the availability of funds and any response from Sonko remain unresolved.

The next developments to watch are whether the bank remits any funds, whether Sonko contests the recovery action, and whether KRA provides further information on the status of the claimed liability.

About the Author

Maureen Onyango is a journalist passionate about storytelling, life coaching and spiritual lessons. She studied at the Kenya Institute of Management and enjoys telling stories that inform, inspire and empower communities.