Gor Mahia’s account frozen over Ksh129 million tax arrears


(FILE)Gor Mahia FC players celebrate with the trophy after winning the Kenyan Premier League ...
(FILE)Gor Mahia FC players celebrate with the trophy after winning the Kenyan Premier League finals at the Moi stadium in Kisumu on November 18, 2017. Gor won 2-2. Photo/Oliver Ananda/Sportpicha.

In Summary

  • Gor Mahia are starring at yet another round of financial quagmire after the tax-man Kenya Revenue Authority froze the club bank's account at the Development Bank over a Ksh. 129 million tax arrears.
  • Citizen Digital understands that the tax-man took the drastic measure this week.
  • Gor Mahia's deputy secretary general Ronald Ngala declined to talk on the matter: "I can't comment on that issue at the moment, please look for the chairman."

Gor Mahia are starring at yet another round of financial quagmire after the tax-man Kenya Revenue Authority froze the club bank’s account at the Development Bank over a Ksh. 129 million tax arrears.

Citizen Digital understands that the tax-man took the drastic measure this week.

Gor Mahia’s deputy secretary general Ronald Ngala declined to talk on the matter: “I can’t comment on that issue at the moment, please look for the chairman.”

When reached for comment, club boss Ambrose Rachier said that he had received a phone call from the bank’s Managing Director that there was a letter from KRA’s Income Tax Department though “he wasn’t sure” of its contents.

Said Rachier: “Well, I have not seen the letter but I’ve been called by the bank…I would plead with you that I see the letter. Wait until tomorrow then we can talk.”

Rachier, when asked whether there had been correspondence between the club and the tax-man before the startling decision was made, said: “We really had nothing (no correspondence) at all . All I know is that about a month ago someone posted on our social media, a purported letter from the Income Tax Department.

Gor Mahia chairman, Ambrose Rachier, casts his vote during the FKF national presidential elections held at the Safaricom Stadium, Kasarani in Nairobi on February 10, 2016. Photo/Stafford Ondego/sportpicha.com
Gor Mahia chairman, Ambrose Rachier, casts his vote during the FKF national presidential elections held at the Safaricom Stadium, Kasarani in Nairobi on February 10, 2016. Photo/Stafford Ondego/sportpicha.

He went on: “I did receive a call from the bank’s Managing Director who is also still away on leave. So, I’m not sure of what it contains.”

However, impeccable sources at the club confided in Citizen Digital that there had been correspondences between the club and the tax-man, with the latter seeking tax arrears amounting to a staggering Ksh 129 million.

The latest development is likely to hit the club below the belt coming at a time when they are involved in crucial assignments– a Caf-Confederation Group D match against Yanga SC of Tanzania this Sunday in Dar es Salaam, Tanzania.

Gor has over the ages walked a tight- financial rope and it remains to be seen how the matter will be settled bearing in mind that three years ago, KRA slapped them with a similar demand.

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Story By Isaac Swila
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