Nairobi, Sept. 3 -- A government irrigation project in Tana River County has become central to a Sh1.38 billion tax battle between a contractor- Jilk Construction Company and the Kenya Revenue Authority (KRA).

At the centre of the dispute is the Bura Irrigation and Settlement Scheme Rehabilitation Project, a government contract that Jilk took over from Afrikon Limited.

Afrikon had been awarded the contract in June 2019 for sheet piling and associated works but could not complete the contract, leading to its assignment to Jilk.

The project accounted for Sh649.6 million of the wider dispute pitting Jilk against KRA, with the company arguing that the project was zero-rated when it took over the contract and that the client - National Irri...