Kenya Revenue Authority (KRA) is demanding more than Sh473 million in unpaid taxes from a publication belonging to Lugari MP Ayub Savula arising for contracts signed with various State agencies for five years.
Mr Savula’s Sunday Publishers secured the contracts between 2013 and 2017 from government agencies, including the National Hospital Insurance Fund, Energy ministry, National Land Commission, Nairobi, Migori and Mombasa counties.
And yesterday, High Court judge David Majanja directed Mr Savula to get a bank guarantee of Sh10 million, within 45 days, as a condition to stop KRA from seizing the assets belonging to the publication. If he does not secure a guarantee within the said period, the KRA would be free to recover the amount by seizing his assets.
Mr Savula rushed to court seeking to bar KRA from executing a judgment of the Tax Appeals Tribunal, allowing the taxman to recover the money. Mr Savula told the court that he had paid Sh3 million and was willing to pay another Sh3 million.
“In any case, I find that the security of Sh3 million being proposed by the appellant (Savula) insufficient and too low considering the tax liability at stake. Security of Sh10 million in the form of a bank guarantee from a reputable bank would be most appropriate taking into account the circumstances of the case,” the judge directed.
Mr Savula had pleaded with the court saying most of his documents had been confiscated and the publication suffered various legal suits, forcing it to shut down when it became expensive to operate. He said the publication did not have any liquidity to furnish the security in one instalment.
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