KRA suffers setback in digital exports tax row

Times Tower in Nairobi, the headquarters of the Kenya Revenue Authority.  

Photo credit: File | Nation Media Group

The Kenya Revenue Authority (KRA) has suffered a setback after the Court of Appeal ruled that software support services supplied by a Kenyan company to its foreign affiliates, qualify as exported services and are not subject to local Value Added Tax (VAT).

The decision overturns a 2024 High Court judgment and cancels a Sh40.6 million VAT assessment against Sybrin Kenya Ltd.

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