Kenya’s High Court recently held that the 2020 tax laws amendment that required insurance agencies, insurance brokerage and securities brokerage services to change from Value Added Tax (VAT) exempt status to taxable status at 16% is unlawful and unconstitutional. The Decision was issued on 16 December 2021.
This was following the enactment into law of the Tax Laws (Amendment) Act 2020 (that was effective 25 April 2020) which deleted insurance agencies, insurance brokerage and securities brokerage services from the VAT exemption list under Paragraph 10, Part II of the First Schedule-VAT Act 2013. This deletion from the VAT exemption list in effect therefore, imposed VAT on these services.
Source EY
