Contractor Responsible for Nairobi Expressway to Cover Sh6.9 Billion in Taxes
The Standard News:
Cale Infrastructure Construction Company Ltd Ordered to Pay Sh6.9 Billion in Taxes
In a landmark ruling, the High Court has upheld a tax demand against Cale Infrastructure Construction Company Ltd, ordering them to pay Sh6.9 billion to the Kenya Revenue Authority (KRA). The decision, handed down by Judge Freda Mugambi on August 5, 2025, follows a tax dispute linked to the Nairobi Expressway project.
The tax bill stems from a broader controversy involving the Kenyatta family’s connections to the Nairobi Expressway construction through proxy companies. Edge Worth Properties Ltd, a proxy company beneficially owned by Enke Investments (a Kenyatta family entity), supplied land and construction materials for the project.
The dispute revolves around allegations that Edge Worth Properties undervalued transactions and misclassified business expenses, with KRA seeking unpaid taxes from them as well. The tax demand against Cale Infrastructure is reportedly related to activities connected to this public-private partnership project carried out with China Road and Bridge Corporation during former President Uhuru Kenyatta's tenure.
The ruling reflects enforcement of tax compliance on a major infrastructure contractor despite connections to influential families. The Board of the Tax Appeals Tribunal had previously ruled on several tax matters involving the proxies, and the High Court endorsed the decision on Cale Infrastructure’s tax liabilities.
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Meanwhile, an audit has exposed a Sh9.4 billion hole in e-Citizen, showing millions paid in illegal charges. MPs have threatened to impeach Mbadi for 'contempt', and Raila has shown opposition to NG-CDF after 20 years of silence.
Sources:
[1] NTV Kenya. (2025). Nairobi Expressway: How the Kenyatta family used proxies in the deals. [online] Available at: https://www.ntv.co.ke/news/investigations/nairobi-expressway-how-the-kenyatta-family-used-proxies-in-the-deals/4620954
[2] Daily Nation. (2025). Nairobi Expressway: KRA seeks tax from Kenyatta family's proxy companies. [online] Available at: https://www.nation.co.ke/news/nairobi-expressway-kra-seeks-tax-from-kenyatta-family-s-proxy-companies/1066-6052668-15vqxmz/index.html
[3] Standard Media. (2025). Cale Infrastructure Construction Company Ltd ordered to pay KSh 6.9 billion in taxes to KRA. [online] Available at: https://www.standardmedia.co.ke/article/2002048521/cale-infrastructure-construction-company-ltd-ordered-to-pay-ksh-6-9-billion-in-taxes-to-kra
[4] The Star. (2025). KRA seeks Sh5.6 billion from Kenyatta family's proxy companies over Nairobi Expressway. [online] Available at: https://www.the-star.co.ke/news/2025-02-17-kra-seeks-sh5-6-billion-from-kenyatta-family-s-proxy-companies-over-nairobi-expressway/
[5] Capital FM. (2025). Cale Infrastructure Construction Company Ltd ordered to pay KSh 6.9 billion in taxes to KRA. [online] Available at: https://www.capitalfm.co.ke/news/2025/08/cale-infrastructure-construction-company-ltd-ordered-to-pay-ksh-6-9-billion-in-taxes-to-kra/
- The ruling against Cale Infrastructure Construction Company Ltd in the Nairobi Expressway tax dispute highlights the importance of financial transparency and compliance within the construction industry, particularly in public-private partnership projects.
- The Kenya Revenue Authority (KRA) is not only pursuing Cale Infrastructure for unpaid taxes, but is also investigating allegations of financial misconduct involving the Kenyatta family's proxy companies in the same project, bringing further scrutiny to the industry and the role of finance in infrastructure development.
- As the emphasis on accountability and regulation in the business and finance sectors continues, public-transit projects like Nairobi's expressway remain under close examination, potentially leading to transformative changes in transportation and industry practices.
