Supreme Court upholds tax reliefs for Japanese workers, firms

Kenya's Supreme Court has upheld tax exemptions for Japanese companies, consultants, and workers involved in development projects in Kenya. The court dismissed a petition by Eliud Karanja Matindi, who challenged the legality of the exemption introduced via a 2021 Legal Notice, ruling it was neither unconstitutional nor discriminatory. The court held that income from foreign sources earned by persons working in Kenya under technical assistance agreements could lawfully be exempted from income tax under the Income Tax Act. The Kenyan government argued the exemptions arose from binding bilateral agreements tied to foreign-funded development projects.