The High Court in Nairobi has stopped the Kenya Revenue Authority (KRA) in its efforts to widen taxation of cross-border consultancy and management fees paid by multinational firms operating in Kenya.
The setback follows a court decision blocking the collection of Sh179.9 million in withholding tax from global advisory firm McKinsey over payments made to its South African affiliate.
In a ruling with potential implications for multinational companies operating in Kenya, the court upheld a 2021 Tax Appeals Tribunal decision that exempted the payments from withholding tax under the Kenya-South Africa Double Tax Agreement (DTA).
Related
McKinsey to study cost of shift to electric vehicles in Kenya
