Peter Kenneth Bank, Mayfair Among Those Hit By Sh1.1bn Tax Demand

Peter Kenneth and three companies, including a bank, are the latest high-profile individuals and entities to be caught up in the ongoing tax crackdown by the Kenya Revenue Authority (KRA).

The Kenya Revenue Authority (KRA) is demanding more than Sh1.14 billion from shareholders of three companies, including Mr Kenneth, for underpayment of tax paid on sale of shares.

The KRA claims that instead of paying Sh1.7 billion for the sale of their shares, the shareholders paid a total of Sh569.9 million.

The taxman believes that the individuals and firms, including 37 Mayfair Bank shareholders, filed underreported capital gains tax (CGT) forms for the transfer of shares in December 2022 for transactions that closed in 2023.

Trouble for Peter Kenneth and 36 other directors in Mayfair Bank started when they went to pay taxes after the sale of their stake in the bank.

The sale of the final 49 percent stake in Mayfair CIB Bank to Egypt’s Commercial International Bank, KRA noted, was finalized on January 31.

Shareholders who sold their remaining stakes in Mayfair to CIB, including Peter Kenneth, lawyer Ambrose Rachier and city tycoon Amos Gichuki Ngonjo, the taxman notes, paid CGT amounting to Sh139.95 million instead of Sh419.9 million.

The KRA is demanding Sh279.97 million from Mayfair shareholders who pocketed a total of $40 million (Sh5.75 billion) for the sale of their remaining stakes in the small lender to CIB.

Meanwhile, Kenneth revealed that the shareholders and the KRA had since agreed on a payment plan to settle the tax liability and that they already paid the first installment.

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“This is a question of, if I sell you my car, you pay me, I give you the logbook, you don’t transfer,” said Mr. Kenneth, adding that it is CIB that delayed transferring after they handed over the documents before the end of the year.

“But me I have finished with you. You have paid me, then you don’t transfer, then you go and crash somebody then people say the car is still in my name.”

He said that the deal was above board and blamed their situation on delays on the side of the buyer to finalize the deal before the new tax kicked in.