On 19 April 2021, the Kenyan High Court issued an order suspending the implementation of the new Kenyan minimum tax on gross corporate income. The suspension order has been issued the day before the first installment of the tax was due. The Kenya Revenue Authority stated that for those who have already paid the first installment of the tax, their payment will be retained as a credit pending the outcome of the hearing. The minimum tax, which came into effect on January 1st 2021, applies regardless of profit at a rate of 1% on a company’s gross income.
The suspension is in effect pending a hearing on May 19 on cases filed by the Kenya Association of Manufacturers and the Isinya Bar Owners Association alleging the tax is unconstitutional.
