This archive report was first published on 11 September 2019.
Kenya Revenue Authority (KRA) is seeking to recover over Ksh16 billion in corporate tax from Tullow Oil, which entered the Kenyan market in 2010.
Matra Associates lodged a petition with KRA in 2017, accusing Tullow Oil of using corruption to climb up the ladder and evade taxes. The petition states, “Tullow has staged a persistent judicial coup to procure skewed court orders that controvert, breach and/or abuse rule of law.”
According to the petition, Tullow Oil owes approximately Ksh 16.3 billion in corporate taxes arising from transactions on product sharing contracts beginning 2010. The company allegedly did not pay the corporate taxes due to KRA while buying out the Production Sharing Contracts and controlling interests of Centric/Africa Oil Corporation.
Similar tax evasion allegations have been made against Tullow Oil in Uganda, where the company was ordered to pay $405 million to the Uganda Revenue Authority (URA) in a case related to the acquisition of Heritage Oil's Ugandan asset.
Published on September 11, 2019, an article on The Nairobi Law Monthly details Tullow Oil's alleged tax dodging racket in Kenya.
