KBL loses Sh513m tax fight over inflation adjustment policy

A beer can production line at the KBL plant in Ruaraka, Nairobi.

Photo credit: File | Nation Media Group

The High Court has overturned a decision by the Tax Appeals Tribunal that had blocked the Kenya Revenue Authority (KRA) from collecting Sh513 million in taxes from Kenya Breweries Limited (KBL). The dispute arose from a 2021 government policy change adjusting excise duty rates to account for inflation.

In a ruling delivered by Justice Freda Mugambi, the court found that the tribunal had overstepped its authority by interpreting a High Court order that maintained a status quo on the implementation of new excise duty rates.

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Note: The results are not exact but very close to the actual.