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Precursor Executive Classroom

Lecture 5 Β· Pesapal won its VAT case. Parliament changed the law.

𝑻𝒉𝒆 π‘ͺ𝒂𝒔𝒆 π‘Ήπ’π’π’Ž: The High Court ruled that a payment company moving money for merchants supplies an exempt financial service. Ten months later, the Finance Act 2026 taxed that service.

By The Precursor Editorial Team, Tax and financial judgement Β· 4 min read,
Lecture 5 Β· Pesapal won its VAT case. Parliament changed the law.

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You are the chief financial officer of a licensed payment service provider in Nairobi. KRA says the commission you charge merchants is subject to VAT. You say it is an exempt financial service. With penalties and interest, the bill is KSh 110.7m.

Before you decide whether to fight, answer two questions. What exactly do you sell? And if you win, how long will the win last?

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The Precursor Editorial Team

Precursor is published by the FinTech Association of Kenya and exercises independent editorial judgement under the Editorial Independence Charter. This article is labelled Precursor Executive Classroom, which marks commercial material. Knowledge on Tax and financial judgement.

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Precursor Executive Classroom

Lecture 3 Β· How A CEO’s personal account became a KSh 163.9m tax bill.

𝑻𝒉𝒆 π‘ͺ𝒂𝒔𝒆 π‘Ήπ’π’π’Ž: Mary Wanjiru Kinyua said KSh 413m in deposits were company sales and loans. Without the paperwork, the courts treated the money as hers, and the one point she won was worth a rounding error.

Tax and financial judgement Β· 6 min read