Kenya - The Africa Tax Review

Africa Tax Review: Key Developments in Week 6 of 2025

April 14, 2025April 14, 2025 - by Olatunji Abdulrazaq - Leave a Comment

Africa Tax Review: Key Developments in Week 6 of 2025. As African governments continue to pursue fiscal consolidation, stimulate growth, and broaden their tax bases, Week 6 of 2025 (February …

EASTERN AFRICA

Kenya Grants Ksh 140 Billion Tax Amnesty to Ease Compliance Burden

March 3, 2025March 3, 2025 - by Jeremiah Amosu - Leave a Comment

The Kenya Revenue Authority (KRA) has announced a significant tax relief under its ongoing Tax Amnesty Program, waiving Ksh 140 billion in penalties, interest, and fines. This initiative is aimed …

British American Tobacco Kenya (BAT Kenya) has denied claims of financial discrepancies amounting to KSh 9.6 billion (US$ 93 million) following a recent investigative report that scrutinized the company’s tax records. The report, titled Missing Millions: A Cross-Examination of British American Tobacco Kenya’s Tax Bill, was published by The Investigative Desk in collaboration with the Tobacco Control Research Group (TCRG) and Tax Justice Network Africa (TJNA). According to the findings, BAT Kenya may have underreported revenue between 2017 and 2018, potentially leading to a tax shortfall of approximately US$ 28 million. Allegations of Tax Discrepancies The report is based on an in-depth analysis of BAT Kenya’s financial disclosures over six years. Researchers cross-examined the company’s annual reports with production records submitted to the Kenya Revenue Authority (KRA), internal government documents, and market data on cigarette consumption and pricing. Investigators allege a gap of KSh 9.6 billion between BAT Kenya’s declared revenues and estimated earnings based on production and sales data. This shortfall suggests that millions of cigarette packs may have been either unaccounted for or underreported, raising concerns about possible tax avoidance or evasion. “This report should be a wake-up call for Kenyan authorities. If these discrepancies remain unexplained, they could indicate potential tax manipulation,” said Kennedy Waituika, a fraud and internal audit expert. Kenya Updates Tax Exemption Rules for Charitable Organisations BAT Kenya’s Response In a statement, BAT Kenya’s Managing Director, Crispin Achola, dismissed the allegations, asserting that the company fully complies with Kenya’s tax laws and financial reporting standards. “We have thoroughly reviewed the report and found it to be largely speculative, containing numerous errors and misrepresentations of BAT Kenya’s operations,” Achola stated. He emphasized that as a publicly listed company on the Nairobi Securities Exchange, BAT Kenya adheres to strict financial disclosure requirements and publishes audited financial statements in line with both local regulations and international reporting standards. Claims of Miscalculations BAT Kenya further criticized the report, arguing that the authors relied on incorrect assumptions when calculating the company’s revenues, profits, and tax obligations. The company claims the report failed to consider deductible costs, applied incorrect cigarette pricing, and disregarded applicable trade margins. Growing Scrutiny on Tobacco Industry Taxation The allegations come at a time when governments worldwide are increasing scrutiny on the tobacco industry’s tax practices, particularly in low- and middle-income countries. Tax experts argue that multinational tobacco firms often employ complex corporate structures and transfer pricing mechanisms to minimize tax liabilities, depriving governments of much-needed revenue for public health initiatives. As the debate continues, the findings of the report may prompt further investigations by tax authorities and policymakers into BAT Kenya’s financial practices. The outcome could have significant implications for corporate taxation and regulatory oversight within Kenya’s tobacco industry.

EASTERN AFRICA

BAT Kenya Refutes KSh 9.6 Billion Tax Discrepancy Allegations

February 18, 2025February 18, 2025 - by Jeremiah Amosu - Leave a Comment

British American Tobacco Kenya (BAT Kenya) has denied claims of financial discrepancies amounting to KSh 9.6 billion (US$ 93 million) following a recent investigative report that scrutinized the company’s tax …

EASTERN AFRICA

Kenya Updates Tax Exemption Rules for Charitable Organisations

February 13, 2025February 13, 2025 - by Jeremiah Amosu - Leave a Comment

Kenya has announced that the new Income Tax Exemption Rules for Charitable Organisations have officially taken effect a year after they were first introduced. “The government notifies taxpayers of the …

EASTERN AFRICA

Kenya Prolongs Tax Amnesty Programme to Mid-2025, Expands Coverage

February 3, 2025February 3, 2025 - by admin - Leave a Comment

Kenya Prolongs Tax Amnesty Programme to Mid-2025, Expands Coverage. In a strategic move to bolster tax compliance, Kenya has extended its tax amnesty initiative by six months, now concluding on …

EASTERN AFRICA

VAT on Auction Sales for Debt Recovery Now Mandatory in Kenya

February 3, 2025February 3, 2025 - by Jeremiah Amosu - Leave a Comment

VAT on Auction Sales for Debt Recovery Now Mandatory in Kenya. In a pivotal decision, Kenya’s Tax Appeals Tribunal (TAT) has ruled that auction sales conducted for debt recovery purposes …

EASTERN AFRICA

VAT in Kenya: President Ruto To Resolve VAT Refund Issue

October 28, 2023December 28, 2024 - by Jeremiah Amosu - Leave a Comment

VAT in Kenya in focus The Value Added Tax, VAT in Kenya is expected to receive renewed attention from President, Dr. William Ruto as he declared his willingness to improve …

EASTERN AFRICA

Kenyan-Tax Adjustment to Change Bottled Water Prices

September 29, 2022December 28, 2024 - by Jeremiah Amosu - Leave a Comment

Stakeholders in the Kenyan economy continue to propose ways to improve the economy Kenyan-tax adjustment has featured a proposal by water bottlers that the tax administration should put off inflation …

EASTERN AFRICA

Kenya-Tax Administration: President-Elect Frowns at Shutting Down Businesses Due to Non-Compliance

September 13, 2022December 28, 2024 - by Jeremiah Amosu - Leave a Comment

President-elect, William Ruto urges decorum in the collection of taxes President-elect of Kenya, William Ruto has expressed displeasure over the use of extreme measures by the Kanya-tax administration like shutting …

EASTERN AFRICA

KRA Vows to Nab Tax Defaulters

September 1, 2022December 28, 2024 - by Jeremiah Amosu - Leave a Comment

The Kenyan Revenue Authority (KRA) has vowed to go after individuals and companies who have refused to file returns in a clean-up exercise to generate more revenue. The tax body …