NAIROBI, Kenya — The Kenya Human Rights Commission (KHRC) has welcomed a ruling by the Tax Appeals Tribunal dismissing an appeal by Del Monte Kenya Ltd and upholding a Sh1.76 billion tax assessment imposed by the Kenya Revenue Authority (KRA), terming the decision a major win for tax justice and public accountability.
In a statement issued on Tuesday, KHRC said the ruling went beyond a routine tax dispute and exposed systemic practices by multinational corporations that deprive the country of much-needed public revenue through aggressive tax avoidance strategies.
“This ruling matters not just for tax reasons, but because it confirms a problem we have raised repeatedly,” the Commission said.
“Large multinational corporations operating in Kenya use complex internal transactions to shift profits and reduce the taxes they should pay here — money meant to fund public services.”
The Tribunal found that KRA was justified in questioning Del Monte’s related-party transactions and profit margins, a determination KHRC said reinforced findings in its recent publication Who Owns Kenya?, which links corporate tax abuse to widening inequality and chronic underfunding of essential public services.
KHRC contextualised the Sh1.76 billion tax claim by outlining what the sum could deliver if channelled into public use, including the construction of about 1,760 public school classrooms, eight fully equipped county hospitals, nearly 29 kilometres of tarmacked road, or the annual employment of more than 3,500 nurses or teachers.
The Commission also noted the funds could support multiple rural and peri-urban water projects across the country.
“When revenue is lost through tax avoidance, children sit in overcrowded classrooms, patients go without medicine, and communities lack clean water,” KHRC said.
“Corporate tax evasion weakens the State’s ability to deliver basic services and shifts the tax burden onto workers, small businesses, and low-income households.”
The Commission criticised what it described as a growing disconnect between the sacrifices demanded of ordinary Kenyans and the conduct of some of the country’s largest and most profitable corporations.
It noted that households are facing increased pressure from PAYE, VAT, and rising levies on basic goods and services, even as multinational firms continue to contest paying billions in assessed taxes aggressively.
KHRC disclosed that it is examining other large corporations, focusing on land ownership, lease terms, and what firms actually pay in land rates and taxes.
Early findings, it said, suggest revenue losses on a scale likely to shock the public, particularly in the current economic climate.
In a list of far-reaching demands, KHRC called on the National Treasury to publicly disclose concrete measures being taken to hold multinational corporations accountable for corporate tax abuse, beyond isolated court cases.
The Commission urged KRA to strengthen transfer pricing audits in high-risk sectors such as agribusiness, extractives, manufacturing, energy, and digital services.
Among the reforms proposed are mandatory public country-by-country reporting by multinationals, punitive penalties where aggressive tax avoidance is proven, restrictions on the deductibility of related-party fees and royalties, publication of major corporate taxpayers and unresolved tax disputes, and closer coordination between tax authorities and land agencies to link landholdings to tax records.
KHRC also called for tougher action against treaty shopping and artificial routing of payments through low-tax jurisdictions, warning that companies with a history of aggressive tax avoidance should not benefit from tax incentives, public procurement, or other forms of State support.
The Commission said the Tribunal’s decision sends a clear signal that corporate accountability and the rule of law must apply equally, regardless of a company’s size or economic influence.
