County Government of Kiambu v Commissioner of Legal and Board Services (Tax Appeal E812 of 2025) [2026] KETAT 71 (KLR) (26 March 2026) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 71
- Citation
- [2026] KETAT 71 (KLR)
- Decided
- 26 March 2026
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TypeTax AppealPostureAppeal from objection decisionCoramCHRISTINE A. MUGA, DR. TIMOTHY VIKIRU BERNADETTE GITARI, BILLY MIJUNGU
Holding
The Appeal be and is hereby partially allowed.
Facts
The County Government of Kiambu filed a notice of objection against the Respondent's assessment of VAT on its revenue streams. The Respondent confirmed the taxes assessed, and the County Government appealed.
Issues
- Whether the Respondent was justified in assessing VAT on the Appellant's revenue streams.
- Whether the Appellant discharged the burden of proof to demonstrate that the Respondent erred in confirming the taxes assessed upon the Appellant.
Reasoning
The Tribunal held that the County Government is a constitutional creature and its functions are not considered taxable services for VAT purposes.
Outcome
The Appeal is partially allowed.
Orders
- PAYE tax assessments on imprests be set aside.
- Withholding VAT and Withholding Income Tax assessments be set aside.
- VAT assessment be set aside.
Remedies
- Each party to bear its own costs.
Authorities cited
Legislation (1)
- Constitution of Kenya
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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