Kenyan tribunal strikes new grounds from KRA response in KEY Trust case — Nation Kenya
Kenya’s Tax Appeals Tribunal ordered the removal from the Kenya Revenue Authority’s (KRA) response of part of the claims concerning the Knowledge Empowering Youth (KEY) Trust charitable foundation. The tribunal concluded that the tax authority had added new grounds at the appeal stage for refusing to renew the foundation’s income tax exemption, Nation Kenya reports.
KEY Trust, founded by Rita Field-Marsh, submitted an application to KRA in July 2025 to renew its tax exemption. In March 2026, the commissioner for micro and small taxpayers rejected the application. Initially, the tax authority raised concerns over substantial payments to KenSAP Limited, which it considered a separate legal entity, and questioned whether the foundation had used its income exclusively for charitable purposes.
New KRA claims
In challenging the refusal, KEY Trust said that KRA put forward grounds in its response to the appeal that had not been included in the original notice. In particular, the tax authority claimed that the foundation had spent more than 25 million Kenyan shillings abroad, had non-resident beneficiaries, had not taken into account the needs of people with disabilities, and had not provided detailed payment summaries and supporting documents.
KRA also raised questions about remuneration for the foundation’s employees and members of its board of trustees and stated that the organization had accumulated substantial amounts instead of spending them on charitable programs. The tax authority insisted that it had not created new reasons for refusal but had explained in greater detail why the foundation had failed to meet the requirements for tax exemption.
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Tribunal findings
The tribunal found that overseas spending, non-resident beneficiaries, issues concerning persons with disabilities, payment documents, remuneration, and the accumulation of funds could each separately have constituted grounds for refusal. Therefore, they cannot be considered merely additional explanations of KRA’s decision.
The tribunal did not strike out the tax authority’s response in full, but ordered the removal of the sections containing new grounds. At the same time, it noted that KRA may consider these issues in a new, properly reasoned decision and give KEY Trust an opportunity to respond. The hearing of the foundation’s appeal against the refusal of the tax exemption will continue.
KEY Trust operates in Kenya and Canada and runs the KEY Libraries and Kenya Scholar Access Program educational initiatives. The first helps public primary and secondary schools equip libraries with books, furniture, computers, and other educational materials. The second supports academically talented students from disadvantaged backgrounds in obtaining university education.
