ICEA building in Nairobi's city center. Photo/softkenya
Jomo Kenyatta University of Agriculture and Technology (JKUAT) has denied ever agreeing to pay Sh296 million as VAT on its purchase of the 18-storey ICEA building in Nairobi’s city centre, contrary to assertions by previous owners.JKUAT says that the building’s previous owner, ICEA Lion Life Assurance Company, has not provided any evidence to the High Court showing that the varsity promised to settle the VAT amount that has now grown to over Sh411 million owing to monthly interest and penalties.ICEA has sued JKUAT for failing to settle the VAT amount, arguing that the underwriter is now at risk of facing recovery action from the Kenya Revenue Authority due to the unpaid tax. The underwriter sold ICEA building to JKUAT last year for Sh1.85 billion.But JKUAT now says that ICEA has not shown the court any evidence to prove that the KRA has sent demands to the insurance firm. The VAT continues to attract penalties and interest of 20 per cent each passing monthJKUAT says the dispute should be referred to arbitration as per terms of the sale agreement.