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Originally published by Capital Businessbusiness
December 6, 2025
2h ago
Supreme Court sets qside 2020 Tax Ruling on bank card fees
NAIROBI, Kenya, Dec 6 -Ā The Supreme Court has set aside a 2020 Court of Appeal decision that classified fees paid by banks to international card networks Kenya breaking news | Kenya news today |..
āØ Key Highlights
The Supreme Court of Kenya recently overturned a 2020 Court of Appeal decision that classified fees associated with bank card transactions as taxable, ending years of legal ambiguity for the country's banking sector.
- The Supreme Court unanimously ruled that such fees lacked statutory clarity for taxation.
- The case originated from Absa's challenge against the Kenya Revenue Authority (Large Taxpayers Office).
- The previous Court of Appeal ruling had deemed payments to global card networks as āroyaltiesā and interchange fees as āmanagement or professional fees,ā subject to withholding tax.
- The Supreme Court's decision dismisses the KRA's tax demand, reinforcing that these fees are operational costs, not intellectual property or professional services.
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