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Originally published by Nation Businessbusiness
April 8, 2026
13h ago
Tribunal shields charities’ investment cash from tax
Ruling redraws how Kenya taxes welfare organisations' income and limits enforcement by KRA...
✨ Key Highlights
The Tax Appeals Tribunal has ruled in favour of the Premchandbhi Foundation, a charity group, setting aside KSh24.3 million in withholding tax and KSh72.6 million in capital gains tax demanded by the Kenya Revenue Authority (KRA).
- The ruling clarifies that charitable organizations can reinvest their income without losing tax exemption, provided the funds are ultimately used to support their mandate.
- This decision impacts the KRA's enforcement strategy against charities with significant investment portfolios, distinguishing between spending and investing.
- The tribunal emphasized that a valid tax exemption certificate, unrevoked, creates a legitimate expectation of tax-exempt status, and investment is not necessarily a misuse of funds.
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