- Tribunal has directed KRA to lift agency notices on Mike Sonko’s accounts
- Former Nairobi Governor regains access to funds pending tax appeal outcome
- The ruling was made by consent during ongoing legal proceedings
- Earlier court orders had already suspended enforcement actions temporarily
- CBK has separately launched a probe into Equity Bank over compliance concerns
Mike Sonko has received a reprieve after the Tax Appeals Tribunal directed that restrictions placed on his bank accounts be lifted. The ruling allows him to access funds held at Equity Bank Kenya Limited while his ongoing tax dispute is still under review. The Tribunal noted that the arrangement would remain in place only for the duration of the ongoing case. The decision effectively restores the operation of accounts that had previously been restricted by tax authorities.
The order was reached through mutual agreement between the involved parties, giving Sonko short-term financial relief. However, the matter remains open and will continue to be heard by the Tribunal in the coming sessions. The ruling does not resolve the core tax disagreement but only pauses enforcement measures for now. The dispute is still expected to return for full determination once hearings progress.
Before the latest decision, the Tribunal had already issued urgent interim orders that temporarily blocked enforcement steps by the Kenya Revenue Authority. Those directions were issued on April 14 after the matter was certified as requiring immediate attention. At that stage, the Tribunal prevented any further action that would have led to freezing or restricting access to Sonko’s accounts. A hearing had also been lined up for April 17, which shaped the urgency of the earlier intervention.
Those earlier protections meant that enforcement actions were already on hold before Friday’s consent ruling. The latest directive now extends that temporary status while the full case continues. It also maintains the suspension of restrictions that had been imposed by the tax authority. The legal process is therefore still active, with no conclusion reached yet.
In a parallel development, the Central Bank of Kenya has opened an investigation into Equity Bank Kenya Limited over alleged non-compliance with a High Court directive. The complaint centres on claims that the lender did not fully implement court instructions linked to a case involving the Asset Recovery Agency and Mike Sonko. The regulator has confirmed it has already sought clarification from the bank as part of its review process. A final determination will be made once the inquiry is complete.
The probe adds another layer of scrutiny to an already sensitive financial dispute involving high-profile parties. Authorities are now examining whether proper legal procedures were followed in handling court orders. The outcome of this investigation could influence how similar cases are handled in the future. For now, the findings remain pending, and no final action has been announced.
Despite the temporary relief, the broader tax case involving Mike Sonko remains unresolved and will continue before the Tribunal. The current ruling only provides short-term access to funds and does not determine the outcome of the dispute. Future hearings will be crucial in deciding whether enforcement actions will resume or be permanently lifted. Both sides are expected to present further arguments as the case progresses.
The situation continues to attract public attention due to its implications for tax enforcement and accountability involving prominent figures. Observers are closely watching how the Tribunal will handle the matter moving forward. The coming weeks are likely to shape the direction of both the tax case and the separate banking compliance probe. For now, Sonko’s financial status remains under temporary protection pending final legal resolution.
