Tax burden: Banks sue CS over law that will lead to 'double taxation'

Federation of Kenya Employers National President Dr Habil Olaka speaking at a press briefing on the state of the employment and labour market in Kenya. [Wilberforce Okwiri, Standard]

Banks have moved to the High Court in a new battle over tax hikes. Through their lobby, the Kenya Bankers Association (KBA) in its case against Treasury Cabinet Secretary Njuguna Ndung'u, argues that the law on financial derivative tax is unprocedural and illegal.

KBA told Justice John Chigiti that the new law will lead to massive losses as one will be required to calculate a 15 per cent withholding tax based on speculation. According to the bank's lobby, Parliament gave the CS the green light to roll out the new law without giving them a chance to explain its impact.