Kenya Archives - Page 2 of 5 - Intelpoint Consulting

The Government Just Cut Fuel VAT to 13%. Here Is the Full Picture

A Legal Notice issued on 14 April 2026 reduces VAT on petrol, diesel and kerosene from 16% to 13% for 90 days. On 14 April 2026, the National Treasury Cabinet Secretary signed a Legal Notice under section 6(1) of the Value Added Tax Act. The order uses the power granted under section 5(2)(b) of the […]

Default Interest and Excise Duty in Kenya: Lessons from the SBM Bank Tribunal Decision

SBM Bank Kenya Limited v Commissioner of Legal Services and Board Coordination Can a bank’s default interest be taxed as excise duty? This question recently came before the Tax Appeals Tribunal in SBM Bank Kenya Limited v Commissioner of Legal Services and Board Coordination. The Tribunal’s answer provides important clarity for banks and financial institutions operating […]

WHEN DOES A FOREIGN COMPANY BECOME TAXABLE IN KENYA?

Understanding Permanent Establishment Risks for Multinationals As international business activity increasingly crosses borders, one of the most critical questions facing foreign investors is whether their activities in a particular country create a taxable presence. In Kenya, this issue is primarily governed by the concept of a Permanent Establishment (PE). Where a foreign company is considered to […]

THE RISING TIDE OF TRANSFER PRICING AUDITS IN AFRICA: A STRATEGIC GUIDE FOR MULTINATIONALS

Across the African continent, tax authorities are significantly strengthening their enforcement of transfer pricing rules as part of broader efforts to protect domestic tax bases and reduce revenue leakage. Transfer pricing has increasingly become a central focus of tax audits across many African jurisdictions. Revenue authorities in countries such as Kenya, Nigeria, South Africa, Tanzania, and […]

Can KRA Challenge Your Old Tax Losses? The Patel Case and the 5-year Limit

Vijay Kumar Shamji Patel v Commissioner For Legal Services & Board Co-Ordination Services. The Tax Appeals Tribunal’s decision in Patel v KRA confirms that KRA is barred from amending tax assessments after five years unless fraud or willful neglect is proven. The case reinforces important taxpayer protections against prolonged audits and retrospective reassessment of historic […]

Intra-Group Loans & Transfer Pricing in Kenya

Kenya’s tax landscape is changing fast, and intra-group financing is right at the center of it. KRA has steadily intensified its scrutiny of cross-border intercompany transactions, and intra-group loans sit at the top of its audit priority list. For MNEs operating in Kenya whether as regional treasury hubs, subsidiaries receiving funding from offshore parents or […]

When Does a Marketing Subsidiary Become a Permanent Establishment?

Travelport Services (Kenya) Limited v Commissioner of Legal Services Board Coordination In February 2026, the Tax Appeals Tribunal issued a landmark ruling in a case centered on whether a Kenyan subsidiary of a global travel technology group constituted a Permanent Establishment of its UK parent, and what that meant for additional assessments spanning corporate tax, […]

Can KRA Chase a Legally Dissolved Company?

Alex Trachtenberg v Commissioner Domestic Taxes In May 2025 the Tax Appeals Tribunal handed down a significant ruling in a case arising from KRA’s attempt to collect legacy tax balances from a company that had been legally dissolved seven years earlier. The Tribunal’s decision sets an important precedent on what tax authorities can and cannot […]

A KES 6.7 Billion Reality Check: Does Your Transfer Pricing Match Your Economic Substance?

In January 2026, Kenya’s Tax Appeals Tribunal delivered a monumental decision in the dispute between Del Monte Kenya Limited and Kenya Revenue Authority. The ruling offers valuable insight into how tax authorities approach transfer pricing enforcement and what multinational groups must do to remain compliant and defensible. Background KRA audited Del Monte Kenya’s transfer pricing […]

eTIMS and Data Driven Tax Validation- Navigating The Shift To Data Driven Income And Expense Verification

Overview of Shift Effective 1 Jan, 2026, KRA will systematically validate income tax returns against electronic datasets (eTIMS, withholding tax, customs). This is no longer just about VAT. It is an income tax control where expenses unsupported by eTIMS invoices risk being administratively disallowed. The move to eTIMS-based validation is a fundamental shift toward continuous, […]

Kenya