A recent High Court decision has bolstered Kenya's fight against tax evasion, upholding a significant portion of a Sh773 million tax assessment against a construction company involved in a "missing trader" scheme.

• The ruling sends a clear message against complex tax evasion schemes like "missing trader" fraud, where suppliers charge VAT but disappear without remitting it.
• The dispute involved allegations that the company claimed fraudulent input VAT refunds, failed to declare employee benefits, and couldn't explain millions of shillings in bank deposits.
• The Court rejected the company's argument that it wasn't responsible for the compliance status of its suppliers, establishing a crucial precedent for due diligence in commercial operations.
• The High Court stressed that tax compliance requires "verifiable footprints" beyond just invoices, demanding documentation like delivery notes, purchase orders, and transport records for large transactions.

The Kenyan government has sold a 15 percent stake in Safaricom, raising Sh244.5 billion for infrastructure investments. This transaction also increased Vodacom Group’s control over Safaricom to 55 percent.

• Proceeds of Sh244.5 billion were generated from the sale, representing a 23.6 percent premium on the six-month volume-weighted average price.
• The Treasury Cabinet Secretary, John Mbadi, confirmed the divestment will fund essential infrastructure projects including energy, roads, and water.
• The government will retain a 20 percent strategic stake in Safaricom, while Vodafone Kenya paid an additional Sh40.2 billion for future dividends on the state's remaining shares.

Kenya's private sector experienced its strongest recovery in over five years in November, driven by a significant increase in new business and consumer spending.

• The Stanbic Bank Kenya Purchasing Managers’ Index (PMI) indicated the fastest rise in new orders in over five years.
• Christopher Legilisho, an economist at Stanbic Bank, stated that recent stimulus measures are now positively impacting the real economy.
• Inflationary pressures remained mild, with input costs rising at the slowest pace in 18 months.