Fresh headache for KRA as firms move to tax havens

KRA Commissioner General John Njiraini

Supa Loaf, Kenya’s largest and most visible bread brand has gone offshore to Mauritius. While Kenyan households will still enjoy the firm’s products, the shift could significantly affect how much tax the firm’s parent company, Mini Group, will pay the Kenya Revenue Authority (KRA).

As Kenya struggles to plug a huge Budget deficit, with a possibility that income tax will be raised for salaried citizens, Mini Group has joined a long list of local and multinational companies that have established holding companies in lower-tax jurisdictions to lower their tax burden in Kenya.