Summary

The Kenya Tax Appeals Tribunal, in the judgement Delmonte Kenya Limited v Commissioner Legal Services and Board Co-ordination delivered on 16 January 2026, upheld the tax authority’s transfer pricing assessment in the dispute between Delmonte Kenya Limited and the Kenya Revenue Authority (KRA). The ruling confirmed the Tribunal’s position on the taxpayer’s transfer pricing arrangements and related issues under Kenyan tax law.

Key points

Background of the Tribunal Case

The case concerned an appeal filed by Delmonte Kenya Limited against an objection decision raised by the Kenya Revenue Authority (KRA). The dispute involved transfer pricing matters related to Delmonte Kenya’s international related-party transactions. The tax authority issued an assessment which the taxpayer challenged at the Tax Appeals Tribunal. The Tribunal’s judgment was delivered on 16 January 2026.

Tax Appeal Tribunal Judgment

The Tax Appeals Tribunal rendered judgement in Delmonte Kenya Limited v Commissioner Legal Services and Board Co-ordination (Tax Appeal E504 of 2025) [2026] KETAT 2 (KLR) on 16 January 2026. The Tribunal considered the facts and arguments presented by both parties in relation to the transfer pricing positions adopted by Delmonte Kenya. The Tribunal upheld the objection decision of the tax authority and dismissed the taxpayer’s appeal.

Case Outcome

The Tribunal’s judgment concluded that the appeal by Delmonte Kenya Limited lacked merit and that the tax authority’s assessment should stand. As a result, the Tribunal upheld the additional tax assessment amounting to KSh 1.76 billion raised by the Kenya Revenue Authority in relation to transfer pricing compliance. The judgment creates a significant precedent in favour of the tax authority on the contested transfer pricing issues under Kenyan tax law.

Source

Tax Appeals Tribunal, Delmonte Kenya Limited v Commissioner Legal Services and Board Co-ordination (Tax Appeal E504 of 2025) [2026] KETAT 2 (KLR) (January 16, 2026)

https://new.kenyalaw.org/akn/ke/judgment/ketat/2026/2/eng%402026-01-16

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Disclaimer:

This content is for general informational purposes only and does not constitute professional advice.

Information provided herein is based on publicly available sources as of the publication date and may be subject to change.

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