Big win for Bidco as Tribunal partial relief in tax battle with KRA

The Tax Appeals Tribunal has granted Bidco Africa partial relief in its ongoing tax dispute with the Kenya Revenue Authority (KRA), delivering a split decision that favors the manufacturer on one key issue while upholding several of the tax authority’s claims.

In a ruling delivered on February 9, 2026, in Tax Appeal E179 of 2025, the tribunal dismissed KRA’s assertion that Bidco had undervalued a consignment of crude sunflower oil. KRA had argued that the alleged undervaluation resulted in underpayment of customs duties and related taxes. However, the tribunal found insufficient basis for the claim and quashed that specific tax assessment against the company.

While Bidco succeeded on the sunflower oil valuation issue, the tribunal upheld KRA’s demands in other areas of the dispute.

The tribunal ruled in favor of KRA regarding import duties on white refined sugar that was brought into the country outside the approved duty remission window. The remission period had run from October 8, 2019, to October 7, 2020. Imports made after October 7, 2020, were therefore not eligible for the concession. The tribunal emphasised that duty remission is strictly tied to the date of entry and clearance of goods, and any imports outside the designated timeframe attract the applicable taxes.

Additionally, the tribunal upheld KRA’s position on Value Added Tax (VAT) obligations relating to certain exports where Bidco did not provide the required export certificates. The absence of proper documentation meant the company could not benefit from VAT exemptions on those transactions.

Overall, the tribunal partially allowed Bidco Africa’s appeal, overturning the tax assessment linked to the sunflower oil consignment, but maintaining the tax liabilities associated with the sugar imports and uncertified exports.