A Sh500 million windfall from a Supreme Court decision that blocked taxes on e-commerce card payments boosted Absa Bank Kenya’s 10 percent rise in net profit for the full year to December to Sh22.9 billion, a top official has revealed.
In a landmark decision, the Supreme Court on December 5, 2025, held that payments made by banks that process card payments on behalf of merchants to card companies are not royalties and therefore not subject to withholding tax. The ruling handed the banking sector a windfall through the release of provisions that had been made in view of the case.
