An emerging trend in recent tax disputes in Kenya suggests that the Kenya Revenue Authority (KRA) is adopting an increasingly expansive approach to Permanent Establishment (PE) and profit issues. In several ongoing appeals, KRA has sought to assert PE based on minimal or indirect local activity, and to apply the Profit Split Method (PSM) to allocate a portion of global profits to Kenya—often with limited regard for the actual scale or nature of the local contribution.
Insight type: Legal Alert
Accelerating Kenya’s e-Mobility Sector: Key Fiscal & Non-Fiscal Incentives Needed for Growth
The Electric Mobility sector is a rapidly growing part of Kenya’s automotive industry, encompassing different types of vehicles: cars, motorcycles, two and three-wheelers, buses, bicycles, batteries, accessories and charging infrastructure. The sector has experienced significant growth, with data showing that electric vehicle (EVs) registrations have more than doubled over the past two years. Additionally, several EV companies have set up operations in Kenya. This growth is attributable to the efforts of key stakeholders in the sector, including the Government.
China and Kenya Deepen Relations Amid Global Instability: Strategic Implications for Africa and Beyond
China and Kenya entered a trade pact following a Ministerial Meeting of Coordinators for the Implementation of Follow-up Actions from the Forum on China-Africa Cooperation that took place in Changsha, Hunan Province, China on 11 June 2025. In a joint declaration between the Chinese and 53 African Foreign Ministers titled ‘China-Africa Changsha Declaration on Upholding Solidarity and Cooperation of the Global South’, China offered duty-free access for African products entering Chinese markets.
Analysis of the Tax Changes Introduced by the Finance Act, 2025
The Finance Act, 2025 (the Finance Act or the Act) was enacted by Parliament, assented to law by the President and subsequently published in the Special Gazette on 30 June 2025. The Act, which came into force on 1 July 2025, has introduced amendments to various statutes, including the Income Tax Act, Value Added Tax Act, Tax Administration Act, and other sector-specific laws.
Supreme Court Affirms Inheritance Rights of Children Born Out of Wedlock
In a recent judgment, the Supreme Court of Kenya affirmed that children born out of wedlock are entitled to inherit from their deceased Muslim father’s intestate estate.
This landmark case involved competing inheritance claims between children born both within and outside of marriage, raising questions about the interplay between Islamic inheritance law and the constitutional principle of equality.
Extension and Renewal of Leasehold Titles in Nairobi City County
The National Land Commission (NLC) issued a notice on 22 June 2025 calling on all property owners in Nairobi City County holding leasehold titles that have either expired or have 5 years or less remaining, to apply for the extension or renewal of their leases. This notice is particularly relevant to both individuals and incorporated entities, including management companies and financial institutions holding securities over leasehold property.
NCC Commences Licensing for Provision of International A2P Messaging
In a significant move to regulate the Application-to-Person (A2P) messaging services within Nigeria, the Nigerian Communications Commission (NCC or the Commission) has released the Licence Framework for International Application to Person (A2P) Messaging in Nigeria (the IA2P Framework), which introduces the “International A2P Messaging Aggregator Licence” (IA2P Aggregator Licence or the Licence). The IA2P Aggregator Licence provides a structured and transparent framework for managing the flow of international messaging traffic through the NCC’s authorised platform.
Analysis of the Tax Changes Introduced by the Finance Act, 2025
The Finance Act, 2025 (the Act) was assented into law by the President on 27 June 2025 and thereafter published in the Kenya Gazette. The Act sets out a wide range of changes to Kenya’s tax laws, including the Income Tax Act (Chapter 470), the Value Added Tax Act (Chapter 476), the Tax Procedures Act (Chapter 469B), the Miscellaneous Fees and Levies Act (Chapter 469C), and the Excise Duty Act (Chapter 472).
NUPRC Issues the Upstream Petroleum Fees and Rents
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with the approval of the Minister of Petroleum Resources, recently issued the Upstream Petroleum Fees and Rents (Temporary) Regulations, 2025 (the Regulations), pursuant to section 216(5) of the Petroleum Industry Act (PIA) 2021 which provides that the NUPRC may in national interest and exigent circumstances, issue a regulation without stakeholder consultation. The NUPRC considered the need for immediate clarity on rents and fees administration in the upstream sector as an urgent issue, as no public consultation was held.
CBN Outlines Regulatory Measures to Support Exit from Forbearance Regime
In a letter dated 20 June 2025 and addressed to all banks, the Central Bank of Nigeria (CBN) outlined six transitional measures designed to support affected banks to exit from the regulatory forbearance regime, which was introduced to help banks manage their credit exposures and maintain stability during the COVID-19 pandemic.