Sendy loses $635,000 VAT case in ruling that could redefine how Kenya taxes Uber, Bolt
- The High Court ruled that Sendy must pay KES 82.2 million in VAT to the Kenya Revenue Authority.
- Justice Helene R. Namisi stated that Sendy exercises control over delivery services, making it a service provider.
- The ruling overturned a previous decision by the Tax Appeals Tribunal that favored Sendy's platform provider argument.
The ruling against Sendy raises significant concerns for the future of digital platforms in Kenya, as it blurs the lines between technology companies and service providers. This could stifle innovation and growth in the burgeoning gig economy, as increased tax burdens may deter new entrants and existing companies from expanding their services.
