Nairobi, July 13 -- The Kenya Revenue Authority (KRA) and Milestone Games, which runs the SportPesa brand, are locked in a legal battle over the taxman's attempt to seize Sh1 billion belonging to the betting firm from banks and telecoms operators.

The Tax Appeals Tribunal has halted the seizure of the cash sitting in five banks, including Absa, KCB and Eco Bank, and telcos Safaricom and Airtel, ruling that the KRA cannot confiscate the Sh1 billion in the middle of Milestone Games' appeal.

The row was triggered on April 30 after the KRA fired agency notices to the five lenders and the two telcos, seeking to recover unpaid excise duty directly from the bank accounts and pay-bills at M-Pesa and Airtel money.

An agency notice is an order f...