Delmonte Kenya, an integrated pineapple producer and exporter, argued it should be characterised as a routine cost-plus producer with residual profits attributed to foreign group entities. The Kenya Revenue Authority challenged the pricing, functional characterisation, and documentation, asserting Delmonte Kenya bore key risks and created core value. The Tax Appeal Tribunal ruled in favour of the tax authority in January 2026, rejecting the taxpayer's tested party selection and benchmarking approach ... Read more

Cipla Kenya Limited, a pharmaceutical distributor, reported an operating margin within the interquartile range under TNMM. The Kenya Revenue Authority adjusted the result to the median, citing comparability defects in the benchmarking study. The Tax Appeal Tribunal sided with the taxpayer in 2025, finding that where defects are explicitly identified, the authority must quantify adjustments rather than default to the median ... Read more

A Kenyan subsidiary of a South African construction group claimed deductions for expatriate salary costs totalling Kshs 46 million in FY 2013. The Kenya Revenue Authority disallowed the deductions for insufficient documentation. On remittal from the High Court, the Tax Appeal Tribunal upheld the disallowance in 2025, finding that intercompany invoices alone were inadequate without employment contracts, assignment letters, or work permits ... Read more

A Kenyan assembler of Chinese motor vehicle parts applied the resale price method to price intra-group purchases. The Kenya Revenue Authority rejected this approach, applying TNMM and assessing additional income plus withholding tax on a deemed dividend. The Tax Appeals Tribunal upheld the switch to TNMM in 2024 but reduced the withholding tax liability, finding no legal basis for part of the assessed period ... Read more

Kenya Revenue Authority issued corporation tax assessments against Ola Energy Kenya Limited covering 2011 to 2016, challenging management fees and petroleum procurement margins from related parties. The Tax Appeals Tribunal set aside all assessments in November 2024, finding they were issued in breach of the applicable statutes of limitations, rendering the substantive transfer pricing arguments moot ... Read more

A Kenyan tobacco company argued that full-cost-mark-up transfer pricing adjustments explained variances between its CIT and VAT declarations on export sales. The Kenya Revenue Authority challenged the adjustments due to missing documentation. The Tax Appeal Tribunal ruled against the taxpayer in 2024, finding that failure to produce the actual transfer pricing policy or sufficient supporting evidence prevented validation of arm's length compliance ... Read more

A Kenyan distributor priced related-party goods using the CUP method based on pre-relationship agreed prices. The Kenya Revenue Authority challenged the method, applying the resale price method instead due to a significant timing gap. The Tax Appeals Tribunal upheld the RPM as the most appropriate method but overturned the authority's adjustment to commission rates on an unrelated-party transaction, partly allowing the appeal ... Read more

Siemens Aktiengesellschaft's Kenyan permanent establishment applied a 3% net cost plus margin based on its limited-risk profile, but Kenya's Tax Appeal Tribunal upheld the tax authority's assessments in 2024, applying a benchmark median of 6.94%. The Tribunal found Siemens failed to discharge its burden of proof and ruled that allocated head office costs constituted management fees subject to withholding tax under Kenyan law ... Read more

A Kenyan subsidiary of a UK tea trading group faced a Kshs 1.4 billion transfer pricing assessment covering 2015–2018, arising from undocumented transactions with a Pakistani related party, Tapal Tea PVT Ltd. The tax authority applied TNMM after identifying common directorship as evidence of control and classified the company's auction licence as a valuable intangible. The Kenya Tax Appeals Tribunal dismissed the appeal in 2024, upholding the assessment in full ... Read more

Itochu Corporation's Kenya Branch argued it was a liaison office subject to TNMM with a cost-based mark-up. The Kenya Revenue Authority applied the profit split method, allocating 39% of combined profits to the branch based on functional analysis, customs data, and segment disclosures. The Tax Appeals Tribunal upheld the PSM as the most appropriate method, affirmed the 39:61 split, and dismissed the appeal, citing high integration and the taxpayer's failure to provide complete records ... Read more

Itochu Corporation's Kenya Branch argued it was a liaison office subject to TNMM with a cost-based mark-up. The Kenya Revenue Authority applied the profit split method, allocating 39% of combined profits to the branch based on functional analysis, customs data, and segment disclosures. The Tax Appeals Tribunal upheld the PSM as the most appropriate method, affirmed the 39:61 split, and dismissed the appeal, citing high integration and the taxpayer's failure to provide complete records ... Read more

Following an audit of Beta Healthcare International Limited, a Kenyan subsidiary of the Aspen Healthcare Group, the Kenya Revenue Authority applied the CUP method rather than the TNMM used by the company to determine arm's length prices. The Tax Appeals Tribunal dismissed the company's appeal in 2024, finding insufficient evidence to support its characterisation arguments and upholding the tax authority's transfer pricing methodology and additional income assessment ... Read more

Checkpoint Technologies Kenya applied TNMM with a net cost plus margin of 5%, within its benchmarked interquartile range of 4.9% to 7.3%. The Kenya Revenue Authority assessed additional income, arguing the median of 5.5% should apply. The Tax Appeals Tribunal disagreed, ruling in favour of the taxpayer that any point within the arm's length range satisfies the arm's length principle under OECD Transfer Pricing Guidelines paragraph 3.63 ... Read more

ECP Kenya Limited charged a cost-plus mark-up for data and analysis services to its associated entity ECP Manager LP, arguing its role was routine support. The Kenya Revenue Authority rejected this characterisation, citing the Managing Director's involvement in investment decisions, and applied a profit split method instead. The Tax Appeals Tribunal dismissed ECP Kenya's appeal and upheld the authority's assessment in November 2023 ... Read more

ECP Kenya Limited charged a cost-plus mark-up for data and analysis services to its associated entity ECP Manager LP, arguing its role was routine support. The Kenya Revenue Authority rejected this characterisation, citing the Managing Director's involvement in investment decisions, and applied a profit split method instead. The Tax Appeals Tribunal dismissed ECP Kenya's appeal and upheld the authority's assessment in November 2023 ... Read more

A Kenyan technology company purchased software from a US vendor for internal use and local distribution. The Kenya Revenue Authority assessed withholding tax on licence payments, classifying them as royalties under the Income Tax Act. The Tax Appeals Tribunal sided with the authority, but the High Court of Kenya reversed that decision in December 2021, ruling in favour of the taxpayer ... Read more

An oil and gas exploration company faced withholding tax assessments on deemed interest from interest-free loans, reverse VAT on imported services, and withholding tax on local services following an audit covering 2011 to 2016. The Tax Appeals Tribunal partially set aside the Commissioner's decision, prompting the tax authority to appeal. Kenya's High Court ruled mostly in favour of the tax authority in November 2021, upholding the deemed interest withholding tax assessments ... Read more

MAN Diesel's Kenyan permanent establishment contested a tax assessment of Kshs 347 million, which attributed offshore equipment supply income from MAN Germany to the PE under the force of attraction rule. The tax authority argued the income was attributable under Article 7 of the Kenya-Germany DTA. The High Court of Kenya ruled in favour of the taxpayer in August 2021, finding the offshore supply income was not attributable to the Kenyan PE ... Read more

Oracle Technology Systems (Kenya) Limited, a distributor of Oracle products, challenged a transfer pricing assessment for FY2015–2017 in which the Kenya tax authority applied the CUP method rather than the TNMM. The taxpayer argued its controlled transactions were at arm's length. The Tax Appeals Tribunal found the method selection inadequately supported and remanded the case to the tax authority for a proper reassessment in 2021 ... Read more

Kenya Fluospar Company Ltd faced tax authority assessments over VAT and transfer pricing concerning leased mining equipment, mining services, and management fees paid to a Jersey Island entity. The tax authorities appealed a Tax Tribunal decision to the High Court of Kenya, arguing TNMM should be replaced with the profit split method. The High Court dismissed the appeal in 2020, confirming that taxpayers, not the Commissioner, have the right to select the most appropriate transfer pricing method ... Read more

Unilever Kenya Limited sold manufactured goods to its related company Unilever Uganda at prices lower than those charged to unrelated domestic and export customers. The Kenyan Commissioner of Income Tax assessed additional tax on the basis that the intercompany prices were not arm's length. Kenya's High Court ruled in favour of the taxpayer in 2005, finding the Commissioner's reliance on Section 18(3) of the Income Tax Act was not validly applied ... Read more