Digital lender wins in Sh796m tax deduction case against KRA
Landmark ruling affirms loan defaults as ordinary business risk in Kenya's expanding digital lending sector..
✨ Key Highlights
Branch International Limited has won a significant High Court case, securing the right to deduct Sh796.7 million in loan write-offs from its tax assessment, a victory against the Kenya Revenue Authority (KRA).
- The digital lender can now deduct Sh796.7 million in bad debts from its 2018 tax assessment.
- The case involved Branch International Limited and the Kenya Revenue Authority (KRA).
- The High Court upheld the Tax Appeals Tribunal's decision, establishing that loan defaults in unsecured mobile lending can qualify as deductible business losses if reasonable recovery steps are taken.
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Copia faces insolvency petition over unpaid debts - May 2026
Kenyan e-commerce firm Copia Kenya is facing an insolvency petition at the High Court concerning unpaid debts, adding to challenges in Kenya's retail sector. This follows a significant profit surge at Car & General, which reported a fourfold jump in net profit to Sh2.4 billion for the year ended December 2025, driven by robust consumer segment sales. Family Bank founder Titus Muya received Sh128.63 million in board pay for the same period. In a separate legal development, digital lender Branch International Limited won a High Court case securing the right to deduct Sh796.7 million in loan write-offs from its tax assessment against the Kenya Revenue Authority.
