FKF and KRA agree on settlement plan for 2012 tax arrears

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FKF President Nick Mwendwa and Barry Otieno.
The tax collecting body has accepted to lift the suspension it had imposed on the federation's accounts following their non-payment of taxes

Football Kenya Federation (FKF) has agreed on a settlement plan with Kenya Revenue Authority (KRA) on tax arrears dating back to 2012.

The two parties have agreed on a deal which will see the country's football body pay in partial the amount it owes the revenue authority.

KRA had put up an agency notice on FKF bank accounts, making it impossible for the federation to transact.

In a series of correspondence seen exclusively by Goal, KRA uplifted the agency notice after FKF agreed on a monthly payment plan for the next one year.

“Kindly treat our agency notice dated 25th May 2015 against the account of Football Kenya Federation as suspended. We appreciate your corporation on this matter,” KRA's letter signed by Chief Debt Enforcement Division officer, Victor Mino read.

“I hereby declare you [FKF] to be the payer of the amount specified in the notice and require you pay the sum of Shs 41, 120, 328 being the tax. 

“Please note, that in case of partial payment, this notice shall remain in force until the amount specified is fully paid.”

Meanwhile, FKF's acting chief executive officer Barry Otieno has blamed the former president Sam Nyamweya for the suspension of the account during his reign.

“It is sad [Sam] Nyamweya’s administration didn’t honour its tax obligation, which has now accrued to Shs 41 million,” Otieno told Goal.

Otieno also explained how the KRA-FKF deal will help football in Kenya.

“This notwithstanding we have already agreed on a settlement plan with KRA and informed Fifa on the consequence this will have in the development of football programs in the country,” added the officer.

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The news comes even as Nyamweya has hinted at running for the upcoming FKF elections.