How irrigation project landed contractor in Sh1.3bn tax fight

A government irrigation project in Tana River County is central to a Sh1.38 billion tax dispute between Jilk Construction Company and the Kenya Revenue Authority (KRA). Jilk took over the Bura Irrigation and Settlement Scheme Rehabilitation Project from Afrikon Limited, which failed to complete it. Jilk argues that the project was zero-rated for VAT at the time of the takeover and claims that the National Irrigation Authority wrongly withheld VAT on payments, creating an artificial VAT liability of Sh649.6 million.