Kenya: The Court Issues Conservatory Order Suspending Implementation of Minimum Tax

Kenya: The Court Issues Conservatory Order Suspending Implementation of Minimum Tax

Justice George Odunga sitting in the High Court of Kenya has on 19 April 2021 granted a Conservatory Order restraining the Kenya Revenue Authority (KRA) from collecting Minimum Tax payments. (“The Order”)

This ruling was issued in the case of Stanley Waweru & 3 others (Petitioners) vs. National Assembly (1st Respondent), The Commissioner General, Kenya Revenue Authority (2nd Respondent) and the Attorney General (3rd Respondent).

The Order will be in force pending the hearing and determination of the main case on the constitutionality of the Minimum Tax. In his ruling, the Judge held that it was in the interest of justice to grant the conservatory order as this would preserve the status quo, the businesses and livelihood of the Petitioners pending the outcome of the main case. 


Related Reading: “Kenyan National Assembly Approves The Ratification of The DTAA With Mauritius”


The Minimum Tax was introduced in 2020 through the Finance Act 2020. It was a tax payable by all companies. The rate was 1% of gross turnover and was due on every 20th day of every quarter of a financial year. The Minimum Tax provisions entered into force on 1 January 2021 and the first instalment was due on 20 April 2021. 

The KRA issued a statement on the Order stating that it would abide by and await the outcome of the main case. The KRA also advised that those who have already paid the tax will retain it as a credit in their iTax ledger. 

The Court has agreed to hear the main case before the second instalment becomes due and the hearing date is set for 19 May 2021.

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