Nairobi — The Kenya Human Rights Commission (KHRC) has welcomed a decision by the Tax Appeals Tribunal dismissing an appeal by Del Monte Kenya Ltd against a Sh1.76 billion tax assessment by the Kenya Revenue Authority (KRA).
In a statement issued Wednesday, the rights lobby described the ruling as a major victory in the fight against corporate tax avoidance by multinational companies operating in Kenya.
KHRC said the decision goes beyond a single tax dispute, validating long-standing concerns over how large multinationals use complex internal and related-party transactions to shift profits and significantly reduce their tax obligations.
"This ruling matters not just for tax reasons, but because it confirms a problem we have raised repeatedly," the Commission said, arguing that revenue lost through aggressive tax planning deprives Kenyans of resources needed to fund essential public services.
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According to KHRC, the Sh1.76 billion upheld by the tribunal could have financed 1,760 public school classrooms, eight fully equipped county hospitals, or 29 kilometres of tarmacked road, in addition to covering the annual salaries of more than 3,500 nurses or teachers, or funding multiple rural and peri-urban water projects.
The Commission criticised what it termed a double standard in Kenya's tax system, where ordinary citizens are urged to shoulder higher VAT, PAYE and new levies, while some of the country's most profitable corporations "aggressively contest paying billions in taxes."
"The tribunal's decision confirms that KRA was right to question Del Monte's related-party transactions and profit margins," KHRC said, adding that the findings align with its publication Who Owns Kenya?, which links corporate tax abuse to widening inequality and underfunded public services.
Tax avoidance
KHRC warned that when revenue is lost through tax avoidance, the consequences are felt directly by citizens, including overcrowded classrooms, understaffed hospitals, shortages of medicines and inadequate access to clean water.
It argued that corporate tax avoidance weakens the State's capacity to deliver basic services while shifting the tax burden onto workers, small businesses and low-income households.
The Commission revealed that it is now examining other corporations, focusing on land ownership, lease arrangements, and the actual amounts companies pay in land rates and taxes.
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Early findings, it said, suggest the scale of revenue loss could "shock many Kenyans," particularly at a time of rising living costs.
KHRC called on the National Treasury to publicly disclose concrete measures being taken to address corporate tax abuse beyond isolated court cases.
It also urged KRA to implement reforms including mandatory public country-by-country reporting by multinational corporations, regular transfer pricing audits in high-risk sectors, tougher penalties for proven tax avoidance, and restrictions on deductible related-party payments without clear economic substance.
Additional proposals include publishing an annual list of the largest corporate taxpayers and unresolved tax disputes, establishing a public register of large landholdings linked to tax records, challenging treaty shopping, and denying tax incentives or public contracts to companies with a history of aggressive tax avoidance.
"It is time to put a stop to multinational corporations looting what rightfully belongs to the people of Kenya," KHRC said, describing the tribunal's ruling as a critical step toward tax justice and accountability.
