Kenyan Insurance Comapanies Rush to Court to Stop The Tax Man from imposing a 10% Exercise Duty on their services

The Kenyan Insurance Companies have moved to the courts to block Kenya Revenue Authority from levying a 10% exercise duty on their services.

The 10% exercise duty was brought in under the Finance Bill 2013 where the Government placed Insurance firms under the bracket of Financial Institutions, whose services are to be levied a 10% exercise duty in order to helpp the Tax man raise more revenue.

The Association of Kenya Insurers (AKI), on Tuesday obtained a temporary injunction blocking the Commissioner of Domestic Taxes and KRA from collecting the exercise duty tax. 

“Therefore for the time being neither the Commissioner nor KRA can collect payment from insurers until the matter in court is heard and determined,” Read part of a circular signed by AKI’s executive Director Tom Gichuhi and directed to all affected industry players.