The Kenya Revenue Authority (KRA) has moved to collect Sh623.4 million in alleged unpaid income tax from former Nairobi Governor Mike Sonko, issuing an agency notice that directs a third party holding his money to hand it over to the taxman, according to reports published on Friday, 16 October 2026.

The notice, dated 12 October 2026, puts the total claim at Sh623,389,105, Citizen Digital and Eastleigh Voice reported. Citizen Digital and Business Today identified the recipient as First Community Bank, which KRA has appointed as its agent for recovering the money.

Interest makes up almost half

The demand relates to individual income tax for the five years between January 2015 and December 2019. Of the total, Sh308.9 million is principal tax, Sh15.8 million is penalties and Sh298.7 million is accumulated interest, according to the figures carried by Citizen Digital, Eastleigh Voice and Business Today.

That means interest alone accounts for close to half of the sum KRA is now pursuing, almost matching the original tax said to be outstanding. Business Today noted that the notice does not set out how the interest built up over the period or how the figures were calculated year by year.

The reports describe the amount as alleged arrears. It has not been established how much money, if any, the bank holds on Mr Sonko's behalf, and there was no public response from the former governor or the lender by the time of publication.

What the agency notice requires

KRA acted under Section 42 of the Tax Procedures Act, 2015, which allows the authority to appoint anyone who holds money for a taxpayer, or owes money to a taxpayer, as an agent to pay that money towards a tax debt. Under the notice, the bank is required to remit funds held for Mr Sonko or owed to him, and to file a return showing what money it holds on his behalf, Citizen Digital reported.

The authority also cautioned that the notice will stay in force until the full amount is recovered, even if part of it is paid. Citing Section 42(13) of the Act, KRA warned that an agent who fails to comply without reasonable cause becomes personally liable for the amount specified, according to Citizen Digital and Eastleigh Voice. Payment is to be made through a system-generated payment slip, Eastleigh Voice reported.

Agency notices are among KRA's most potent enforcement tools, because they allow the authority to reach funds directly through banks and other third parties rather than waiting for a taxpayer to pay.

A long-running tax dispute

The latest move comes against the backdrop of an earlier fight between Mr Sonko and the taxman over frozen accounts. In April 2026, the Tax Appeals Tribunal directed KRA to lift agency notices that had frozen several of his bank accounts while his tax appeal is heard, The Star and Citizen Digital reported. That order, reached by consent of both parties, built on interim orders issued on 14 April 2026 and on earlier directions made in November 2025.

In that case, Mr Sonko argued that the taxes in question were contested and had not been determined, and he asked the tribunal to correct its earlier orders after some of his accounts were left out, The Star reported. The tribunal noted then that the dispute had not been conclusively decided.

It is not clear from the reports whether the new notice to First Community Bank is linked to the liabilities already before the tribunal, or whether Mr Sonko intends to challenge it. Business Today observed that the notice does not on its own show that any money has been recovered.

Mr Sonko served as Nairobi governor until his impeachment in December 2020.

Photo: Eastleigh Voice