The High Court in Machakos has granted an injunction against the implementation of the Minimum Tax. The case was filed in Machakos by Kitengela Bar Owners Association through their lawyers Okwach & Company Advocates
The case has raised similar issues to the suit that had been filed last month by Kenya Association of Manufacturers (KAM), Retailers Association of Kenya (RAK) and Kenya Flower Council (KFC) in Nairobi.
Justice George Odunga sitting in Machakos stated , “I grant conservatory orders restraining the 2nd Respondent Kenya Revenue Authority (KRA) whether acting jointly or severally by itself, its servants, agents, representatives or howsoever otherwise from the implementation, further implementation, administration, application and/or enforcement of Section 12D of the Income Tax Act, Chapter 470 of the Laws of Kenya as amended by the Tax Laws (Amendment) (No.2) Act, 2020 by collecting and/or demanding payment of the Minimum Tax pending the hearing and determination of this Petition.”
The orders granted in Machakos are applicable to the Petition filed in Nairobi and are applicable to all Kenyans. This has been confirmed and admitted by KRA this afternoon in court before Justice Mrima in the Nairobi Petition. By virtue of the Conservatory Orders having been granted, the Minimum Tax payments due April 20, 2021 have been stayed until the matter is heard and determined in full.
This order fully aligns with the petitions submitted to the courts by the above-mentioned Associations on the increased cost burden to businesses across the country.
The High Court sitting in Nairobi has thus transferred the Nairobi Petition to Machakos to have the two Petitions consolidated and heard together. The Conservatory Orders issued are an interim measure and the matter will be fully heard in the coming days. As KAM and the other Associations involved, we shall continue to vigorously argue our case on behalf of members.