Conditional Stay Pending Appeal

The taxpayer expressed concern that, if the application were not granted, the KRA might proceed with enforcement of the judgment. Such enforcement could cause significant financial detriment to the company, particularly given the magnitude of the tax assessment and the company’s existing financial constraints.

The applicant further highlighted the potential difficulty the respondent might face in reimbursing any taxes found due in the event the appeal succeeds.

The Court allowed the application on the following conditions:

1. The taxpayer deposit Kshs. 50,000,000 with the respondent.
2. the taxpayer provide a bank guarantee of Kshs. 100,000,000 from a reputable financial institution within 30 days.

Failure to comply with these conditions would result in the vacation of the stay orders, and the KRA being at liberty to execute the judgment and decree of the Tribunal.