The Kenya Revenue Authority’s (KRA) race to meet the set revenue targets has suffered yet another blow after the High Court quashed regulations requiring commercial banks to pay capital gains tax on all land sold to recover bad loans.
High Court judge George Odunga found that a bank’s interest in any property used as a collateral is only to the extent of the sum due to it, and that the lenders are not in a position to ascertain if there were gains made after the sale or not.
