High Court has ordered the former Nairobi Governor Evans Kidero to pay Kenya Revenue Authority (KRA) Sh427 million as tax after failing to prove that the funds targeted were raised for the campaigns.
Audits carried out by the Commissioner established that the proceeds from fundraisers by the former governor were being deposited together with other business proceeds into his personal bank accounts.
High Court judge David Majaja ruled that the burden of proof lay on Dr Kidero to demonstrate that the funds raised for the campaigns were actually utilized for that purpose.
And if so, it would not constitute taxable income. On the other hand, if the money was retained or diverted to his own personal use, it would be taxable income to him and liable to income tax.
The Court of Appeal has blocked the Ethics and Anti-Corruption Commission (EACC) from searching and valuing multi-million properties belonging to former Nairobi governor Evans Kidero.
Three judges agreed that the search by the anti-graft body can wait for the outcome of the appeal filed by Dr Kidero and his companies.
The former Nairobi county boss rushed to court after EACC issued him with fresh orders in July last year, seeking to visit several of his properties with plans to inspect and value them. The properties targeted include Gem Investments, Gem Apartments and Gem Suites.
Dr Kidero argued that continued investigation, inspection and valuation of his properties, while the case was pending before the Appellate court, was an abuse of the court process.
“In our view, the applicants’ appeal is arguable and is not frivolous as correctly held by this Court differently constituted in a previous application. We have no reason to hold otherwise,” Justices Roselyn Nambuye, Asike Makhandia and Jamila Mohammed said.
EACC had defended the plans to search and value the properties saying an earlier order, which Dr Kidero contested, was about himself and the anti-graft body could not use it to search his other properties.
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