Kenya’s High Court exempts fintechs from VAT in landmark ruling
- The Kenyan High Court ruled that fintechs are exempt from VAT on payment services.
- The ruling overturned a previous decision allowing KRA to pursue a KES 76.8 million claim against Pesapal.
- Justice Rhoda Rutto classified licensed fintech operators as providers of essential financial services.
The ruling is a significant win for the fintech sector in Kenya, as it not only provides tax relief but also validates the role of digital payment providers in the financial ecosystem. This decision could encourage more innovation and investment in fintech, but it also raises questions about the future relationship between fintechs and regulatory bodies like KRA.
