Kenya Revenue Authority (KRA) order for the freezing of African Reinsurance Corporation (Africa Re) over tax arrears.
The firm has now put KRA on the spot over what it terms as the violation of its immunity as granted by the African Union in 1987.
KRA has since ordered Africa Re’s bankers and other institutions to comply with the tax demands or else they risk closure with immediate effect if they fail to do so.
The other shareholders of the firm are African Development Bank, four non-African investors and more than 100 large insurance companies that have roots in different parts of the country.
The move has since threatened to cause a storm in the AU because of Kenya’s strategic position and role in matters that affect the entire African Continent.
KRA has since ordered African Re to pay the tax balance of Sh12.8 billion within 30 days or else an action will be taken against it.
The taxman sent the letter to the firm on August 28 demanding for the same.
The letter was sent through the Ministry of Foreign Affairs and another to Citibank, which it the firms banker in the country.
The push for the firm to pay taxes is in line with the government crackdown on the failure of some firms to comply with their tax demands.