Tax Case Summaries

Tax Case Summary - Issue No. 10/2025

The 10th edition of PwC’s Tax Case Summaries dives into the fast-evolving world of tax law in Kenya, where the Tax Appeals Tribunal (TAT) is making decisions that are reshaping how businesses and individuals interact with the Kenya Revenue Authority (KRA) in the interpretation and enforcement of tax laws. From high-stakes excise duty showdowns to customs classification battles and procedural pitfalls, this edition is packed with insights.

In this edition, the editor’s Pick is SBM Bank Kenya Limited vs Commissioner of Legal Services and Board Coordination. In a landmark victory for the financial sector, the Tribunal ruled that penal interest on late loan repayments is not subject to excise duty—handing SBM Bank a decisive win. This rulingsharpens the legal definition of what qualifies as excisable income under the Excise Duty Act, 2015. It’s a precedent-setter in the banking industry.