Petition No. E338 of 2022.

Mwaura Kabata, Viva Africa Consulting & Others vs. The National Assembly & 3 Others.

The export of services was moved from the zero-rated category to the exempt category by the Finance Act of 2020. The Finance Act of 2022 reclassified the export of services as taxable at the standard rate, except for BPO services, which were reinstated into the zero-rated category. This was challenged in Petition Number 338 of 2022. The High Court has dismissed this petition, and, consequently, the classification by KRA of exported services as taxable stands.

The Petitioners sought to have Section 30(b) of the Finance Act 2022, which introduced VAT for exported services at the standard rate, declared unconstitutional and a further order directing the Kenya Revenue Authority to refund any money collected through VAT on exported services. 

Viva Africa Consulting argued that the inclusion of exported services in the Finance Act of 2022 not only amounted to double taxation but also violated the constitution's requirement for public participation because the amendments were made after the public participation exercise. It was Viva’s submission that the additional amendments oug...