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Originally published by Nation Business
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business
May 4, 2026
12h ago

Digital lender wins in Sh796m tax deduction case against KRA

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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