The Kenya Revenue Authority (KRA) has instructed five banks to release Sh61 million from accounts held by the Nairobi hospital.
KRA sent notices to the Commercial Bank of Africa, Barclays, Standard Chartered, the National Industrial Credit Bank and the Kenya Commercial Bank.
Nairobi hospital has however moved to court to stop the taxman from compelling the banks to release the funds saying that the government through the Health ministry had a memorandum of understanding with Norvatis Pharma AG allowing it to administer cancer drugs free of charge.
The Nairobi hospital who filed their documents through the Kenya Hospital Association said that the taxes were to be paid by the ministry who they stated had notified Treasury of the tax that was due.
The hospital said that the the Principal secretary for the Health Ministry had written to KRA commissioner general stating that the ministry was working towards settling the debt in July 9.
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