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A recent Tax Appeals Tribunal ruling in Coca-Cola Beverages Limited v Commissioner of Domestic Taxes clarifies that the six-month statutory window for claiming input VAT cannot be extended through an amended return. We examine the critical compliance implications for businesses relying on iTax amendments to correct historical omissions.

In Aquavita Kenya Limited v Commissioner of Domestic Taxes, the Tax Appeals Tribunal affirmed that economic substance overrides legal form when classifying financial instruments for tax purposes. The ruling clarifies the application of Withholding Tax on deemed interest, restricts the Revenue Authority from imposing inconsistent tax treatments on a single transaction, and establishes procedural limits on introducing new issues during tax objections.

The High Court has reinstated a KES 29.2 million KRA tax assessment against Jakoline Enterprises Limited. The ruling establishes a critical legal precedent for corporate compliance: submitting raw financial records during an audit is insufficient to discharge the statutory burden of proof without an explicit reconciliation of variances between Corporation Tax and VAT returns.

An analysis of the Court of Appeal judgment in Sybrin Kenya Ltd v Commissioner of Domestic Taxes [2026] KECA 1293 (KLR), examining the VAT classification of cross-border software support services under Section 2 of the Kenya VAT Act following a KES 40.7 million assessment on subcontracted local services.

Kenya’s Finance Bill 2026 proposes a formal crypto reporting framework by introducing Sections 6C and 6D to the Tax Procedures Act. This legislative change shifts the digital asset landscape from an unregulated space to a strict compliance environment.

An analysis of the Finance Bill 2026 highlights the government's focus on meeting a Sh4.79 trillion budget through expanded tax bases and accelerated digitisation. Key proposals include empowering the Kenya Revenue Authority (KRA) to use pre-populated data for tax positions, reducing return filing periods from six to four months, and re-adjusting the Monthly Rental Income (MRI) tax rate to 10%. Additionally, the bill introduces a tax amnesty programme and direct waivers for penalties up to Kshs 2 million to encourage compliance and clear taxpayer ledgers.

Kenya’s National Treasury has implemented a strategic VAT reduction on fuel to cushion against global price shocks. This briefing examines the legislative framework of the 8% rate, the discretionary powers for extension, and the critical tax filing considerations for businesses navigating these transitional changes.

April is a critical month for Kenya taxpayers. This article outlines installment tax and balance of tax obligations under Section 12 of the Income Tax Act, key deadlines, and the financial impact of non‑compliance.

The Tax Appeals Tribunal ruling in Premier Credit vs. Commissioner of Domestic Taxes clarifies that loan principal is a non-deductible capital asset, while only interest and fees qualify for bad debt tax relief. This decision highlights the need for precise accounting to mitigate Corporate Income Tax (CIT) risks and ensure regulatory compliance during KRA audits.

This article explains Kenya’s interest expense restriction under Section 16(2)(j) of the Income Tax Act, which limits the deductibility of interest paid to non‑resident lenders to 30% of EBITDA. It outlines the scope of the rule, exempt entities, the three‑year carry‑forward mechanism for excess interest, and the implications for businesses relying on foreign debt. The summary highlights how the cap affects tax liability, financing strategies, and cash‑flow planning, while underscoring the need for careful tax planning and compliance for companies operating in Kenya.

A tax dispute between Delmonte Kenya Limited and the Kenya Revenue Authority (KRA) arising from a transfer pricing audit for 2019–2021, resulting in confirmed additional income tax assessments of KES 4.96 billion. Key issues include the characterization of Delmonte’s functions, the transfer pricing method applied to related‑party sales to DMI GmbH, and the disallowance of intercompany recharges and interest expenses.

Kenya Revenue Authority’s move to validate income tax returns through e-TIMS marks a major policy shift from self-assessment to algorithmic oversight. This raises constitutional, legal, and taxpayer rights concerns, challenging the balance between digital transformation and established tax law.

New NSSF rates effective 1 February 2026. Employee and employer contributions remain at 6% each, but expanded Lower and Upper Earnings Limits increase monthly deductions. Includes historical rate changes, salary impact examples, and key action points for employers and employees.

The High Court of Kenya in Commissioner of Investigation & Enforcement v Hanqing Zhao (Income Tax Appeal E010 of 2025) ruled that tax objections must be lodged exclusively through the iTax system to be legally valid. Physical letters or emails are ineffective, and the statutory 60‑day response period under Section 51 of the Tax Procedures Act begins only once an objection is filed on iTax.

The High Court ruled that Sendy Ltd is the principal supplier for VAT purposes because it controls pricing, driver assignment, billing, and customer payments. As a result, VAT applies to the full transaction value, not just commissions. The decision overturns the TAT ruling and confirms that economic reality overrides contractual form, exposing digital platforms to significant VAT risk where they exercise substantive control.

Many organizations struggle with siloed budgeting, where Finance reconciles disconnected plans from Sales, HR, Operations, and Marketing—leading to delays, errors, and outdated forecasts. Integrated Budgeting and Forecasting, a core of Extended Planning and Analysis (xP&A), solves this by uniting all departments in a shared planning environment.