Peter Mukuha Kago, an heir of supermarket chain Naivas, has won a Sh777 million tax dispute against the Kenya Revenue Authority (KRA), after the High Court on September 22 set aside a Tax Appeals Tribunal ruling that had backed the taxman's value-added tax (VAT) demand against Achievo Limited, a staffing and recruitment firm linked to him that supplies workers to Naivas. The win was reported on October 8.
KRA audited Achievo's books for 2019 to 2023 and demanded Sh777,092,137 in VAT, alongside an income tax assessment of about Sh102 million. It had first asked for Sh962.7 million but reduced the figure to Sh777 million after Achievo objected, under a partial consent recorded on November 29, 2024.
The Tribunal dismissed Achievo's appeal on May 2, 2025, finding that Achievo and Naivas had an agency relationship under their agreement and addendum. It also found that the documents Achievo produced were inadequate. KRA then issued agency notices to the firm's bank accounts to recover the money and Achievo took the fight to the High Court, where KRA had earlier asked that 80% of the disputed tax be deposited as security for any stay of enforcement.
The High Court allowed Achievo's appeal and vacated the VAT assessment on staff-cost reimbursements the firm received from Naivas. Achievo had argued that it acted as a payroll agent and that the reimbursements were pass-through disbursements outside VAT under Section 13(5) of the VAT Act.
Achievo was incorporated in 2013 and shares directors with Naivas. Kago, a member of the family of the retailer's founder, who died in 2010, had warned that enforcement could wind up the firm and cost jobs.
The ruling does not address a separate Sh1.8 billion corporation tax dispute over the sale of Naivas' minority stake, in which the Tribunal sided with KRA in 2025.
KRA's response to the judgment was not reported, and whether it will appeal remains a separate step. The reports also did not say how the roughly Sh102 million income tax assessment fared.
