Lobby sues Treasury CS over 'illegal' tax deal with Mauritius

National Treasury Secretary Henry Rotich.

A tax civil society has sued National Treasury Secretary Henry Rotich over an ‘illegal’ agreement signed with Mauritius, in a major litigation that could affect thousands of companies operating in Kenya.

The suit filed at the High Court by Tax Justice Network-Africa (TJN-A) demands that Rotich withdraws a taxation treaty entered in 2012 which allows multinationals to either pay taxes in Kenya or Mauritius if they have operations in both jurisdictions. Through its Executive Director Alvin Mosioma, the society says the treaty is open to abuse as it would help companies evade taxes.