The Kenya Revenue Authority (KRA) has been barred from collecting 16 percent value-added tax (VAT) from firms that link banks, mobile money operators and payment service providers, marking a major win for Kenya’s three main payment switch companies.
In a ruling on October 24, the Tax Appeals Tribunal faulted the KRA’s move to levy VAT on Kenswitch’s services, finding that the firm provides financial rather than ICT services.
