Absa loses 8-year royalty tax battle against KRA

Absa branch in Nairobi. FILE PHOTO | NMG

Absa Bank #ticker:ABSA has lost an eight-year battle with the Kenya Revenue Authority (KRA) over a share of billions of shillings paid to multinational credit card firms like Visa and MasterCard as royalties.

A bench of three Court of Appeal judges has ruled that the payments made by Absa to the credit card companies were royalty and subject to withholding tax.

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