Multinationals and persons who export services from Kenya including cross-border consultancies have been dealt a blow after the High Court threw out a petition challenging the imposition of Value Added Tax (VAT) on their services, bringing to an end protracted court battles with the taxman.
This means Kenyans exporting services to other jurisdictions will become less competitive due to the additional taxes now imposed on their services in a ruling that will embolden the taxman to go after big tech companies and other multinationals operating in Kenya.
