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Speaking during a press briefing in Nairobi on Monday, the CS said reforms such as a simplified “mitumba” tax regime, reduced phone import taxes, and a shift in filing timelines are aimed at easing business costs, improving efficiency, and boosting revenue collection rather than raising prices, stressing that “there is miscommunication around this.”
The dispute stemmed from a compliance audit conducted by KRA on Nairobi County for the period between 2019 and 2023. Following the review, the authority issued tax assessments exceeding Sh8.2 billion over alleged unpaid PAYE, withholding VAT, withholding income tax, VAT linked to county revenue streams and NITA levies.
Odhiambo also raises issues with the proposed tax treatment of mitumba imports. The Bill introduces a new Section 12H in the Income Tax Act, which assumes a 5% profit on customs value and requires payment before goods are released by the Kenya Revenue Authority. She says this means a trader bringing in goods worth Sh1 million would pay Sh50,000 whether or not they make profit or loss, calling the approach unfair.
According to the audit findings, the college recorded spending on goods and services amounting to Sh15,691,282, with Sh5,948,284 processed through cash transactions that went beyond the allowed threshold of Sh50,000 per item per year under the Public Procurement and Asset Disposal Regulations, 2020.
The college’s accounting team admitted that statutory deductions were not remitted on time during part of the 2024/2025 financial year, linking the situation to a drop in government funding that affected its cash flow
The proposed changes are contained in the Draft Income Tax (Residential Rental Income Tax) Regulations of 2026, which require all individuals earning taxable rental income to register their properties through the Electronic Residential Rental Income Tax System (eRITS), replacing the current voluntary registration model.
KRA explained that the draft regulations were developed by the Commissioner General acting on behalf of the Cabinet Secretary for the National Treasury, following the requirements set out under the Statutory Instruments Act, Cap. 2A.
In its submission to the National Assembly Departmental Committee on Finance and National Planning, the OCoB cited concerns over proposed amendments to the Eighth Schedule of the Income Tax Act (Cap. 470), which seek to exempt CGT on transfers of property between companies and shareholders as part of internal reorganisations.
all pending balances must be cleared much earlier. The authority says the move is meant to improve timely payment and reduce accumulation of tax debts.
The case stems from agency notices issued by the Kenya Revenue Authority targeting several of Sonko’s bank accounts in an effort to recover what it considers disputed tax obligations. Sonko challenged the move before the Tax Appeals Tribunal, arguing that the tax claims had not been fully determined and should not be enforced at that stage
KRA defended its actions, insisting that the notices were based on new tax assessments and were issued within the law after the company failed to clear outstanding dues. The authority also argued that the company had not exhausted the available dispute resolution mechanisms before seeking court intervention.
The recruitment follows the departure of Humphrey Wattanga, who left office on Wednesday, April 8 after being placed on terminal leave by the board. He had earlier been asked to step aside but did not resign.