The Kenya Revenue Authority (KRA) has issued an agency notice to First Community Bank seeking recovery of Sh623.39 million in alleged outstanding tax arrears attributed to former Nairobi Governor Mike Sonko Mbuvi Gidion Kioko, according to a notice dated October 12, 2026.
The notice, addressed to the bank’s managing director, invokes Section 42 of the Tax Procedures Act, 2015, which empowers the tax authority to require a third party holding or owing money to a taxpayer to remit specified amounts towards unpaid taxes.
According to the document, the outstanding amount relates to individual income tax covering the period between January 2015 and December 2019. The total comprises Sh308.92 million in principal tax, Sh15.76 million in penalties, and Sh298.72 million in interest.
KRA has directed the bank to pay the specified amount from any funds it owes or holds for Sonko, or money held on his behalf, subject to the applicable legal requirements. The bank has also been required to provide a return detailing any money held for the taxpayer.
The notice states that it will remain in force until the amount specified is fully recovered, including where only partial payment is made. It further warns that an agent who fails to comply without reasonable cause may become personally liable for the amount specified under the law.
Section 42 of the Tax Procedures Act provides a mechanism through which the Commissioner can pursue unpaid taxes by issuing written notices to third parties holding or expected to hold money for a taxpayer. The law also outlines circumstances in which an agent unable to comply because of insufficient funds must notify the Commissioner in writing within 14 days of receiving the notice.
The legislation further provides for the amount recovered through an agent to be credited against the taxpayer’s outstanding tax liability.
KRA’s notice identifies the Debt, Refunds and Ledger Management Division within its Micro and Small Taxpayers Department as the office handling the recovery process.
The document does not establish whether First Community Bank holds sufficient funds to satisfy the full amount or whether the arrears have since been paid, challenged, or settled through an arrangement with the authority.
