Relief to Sonko as Tribunal Orders KRA to Unfreeze Bank Accounts
Former Nairobi Governor Mike Sonko has secured a major legal reprieve after the Tax Appeals Tribunal ordered the Kenya Revenue Authority (KRA) to lift restrictions on his bank accounts amid an ongoing tax dispute.
In a ruling delivered on April 17, the Tribunal directed KRA to withdraw agency notices that had frozen several of Sonko’s accounts at Equity Bank Kenya, granting him full access to his funds pending the hearing and determination of the case.
The decision followed a consent agreement between both parties, reinforcing earlier interim orders issued on April 14 when the Tribunal had certified the matter as urgent and temporarily halted KRA’s enforcement actions.
Legal representatives for Sonko welcomed the outcome, terming it a significant relief that restores his financial access while ensuring due process is followed before any further enforcement measures are taken.
KRA did not oppose the consent but maintained that its tax claims remain valid and will be pursued during the substantive hearing, emphasizing its mandate to enforce tax compliance under the law.
The case has also drawn attention from the Central Bank of Kenya, which has launched investigations into compliance by Equity Bank and other financial institutions. The probe follows a complaint alleging failure to adhere to court directives issued by the High Court’s Anti-Corruption and Economic Crimes Division in a related case involving the Asset Recovery Agency.
CBK confirmed it is reviewing the matter and has sought clarification from the institutions involved, stating that appropriate guidance will be issued once the investigation is complete.
The Tribunal’s ruling offers Sonko temporary financial relief as the broader legal battle over the tax claims continues.
