THE INCOME TAX (CHARITABLE ORGANIZATIONS AND DONATIONS EXEMPTION) RULES, 2024

Recently, the Kenya Revenue Authority (KRA) informed the public of the implementation of the new Income Tax (Charitable Organizations and Donations Exemption) Rules, 2024, which officially took effect on 18th June 2024. What Does This Mean? Ordinarily, any income earned in Kenya by an organization is subject to taxation under the Income Tax Act, Cap […]

Why The Proposed Minimum Tax Offends All The Principles Of Modern Taxation

The Finance Act, of 2020 introduced Section 12D under the Income Tax Act requiring businesses to pay a minimum tax at the rate of 1% of the gross turnover. This amendment was declared unconstitutional by both the High Court and the Court of Appeal. In summary, here are our views on why the proposed minimum […]

Termination Of Employees On Probationary Contract Under The Employment Act, 2007

The High Court recently handed down a judgment in Petition No. 94 of 2016 – Monica Munira Kibuchi v Mount Kenya University declaring section 42 (1) of the Employment Act, 2007 unconstitutional. The above section applies to termination of employees under probationary contracts. In reaching this decision, the Court juxtaposed the statutory provisions of section […]

Will the Global Minimum Tax be a good or bad thing for Africa?.

The G7 leaders are proposing the adoption of a global minimum tax rate of 15%. This can be viewed as a “global race” to combat tax avoidance and obliteration of tax havens, with the essence to prevent multinationals from shifting profits to jurisdictions with lower tax rates. This is a thing that has been fondly […]