The Kenyatta International Convention Centre (KICC) has secured a four-month reprieve in its Sh1.5 billion tax dispute with the Kenya Revenue Authority (KRA), following a High Court order that suspended enforcement measures against the corporation.
Justice Josephine Mong’are extended an earlier order barring KRA from issuing agency notices on KICC’s bank accounts until February 4, 2026, allowing the two parties time to engage in settlement talks.
The court noted that the negotiations should focus on reaching a mutually acceptable solution to the long-running debt matter.
KICC had rushed to court last month after the taxman issued a seven-day ultimatum demanding the settlement of Sh1.5 billion in arrears or risk having its accounts attached.
The notice, served on August 11, prompted the corporation to seek protection from the court, arguing that immediate enforcement would paralyze its operations.
“That in the interim the respondent (KRA) is restrained from enforcing agency notices against the appellant pending the inter-partes hearing of the application herein,” Justice Mong’are said in a ruling delivered on August 21.
The tax arrears in question comprise corporate tax, pay-as-you-earn (PAYE), value added tax (VAT), as well as legacy debts, penalties, and accrued interest.
KICC Chief Executive James Mwaura warned that any disruptions, including suspension of its accounts or seizure of assets, could have direct national and diplomatic implications given the corporation’s central role in hosting both local and international events.
He told the court that KRA’s demand for full payment within seven days was unreasonable as it ignored a pre-existing agreement between the two agencies on how to settle historical tax obligations.
He further explained that the issue was under review by senior government officials, including the principal secretaries of Treasury and Tourism.
According to him, the action by KRA was premature, prejudicial, and inconsistent with fair administrative practices.