This archive report was first published on 30 September 2019.
On September 27, 2019, the High Court in Kenya delivered a significant ruling that has brought relief to private wildlife ranches and the Kenya Wildlife Service. The court blocked the Kenya Revenue Authority (KRA) from demanding Sh80 million in unpaid Value Added Tax (VAT) from Lewa Wildlife Conservancy.
The KRA had claimed that Lewa owed the tax on park entry fees over a 12-year period. However, Lewa argued that it would be impossible to recover the VAT from all the visitors to its private park for the 12 years, as demanded by the KRA.
Justice Mary Kasango agreed with Lewa, citing the fact that the taxman had initially written and informed the firm that the gate fees were exempt of VAT. Making a U-turn on this assurance would be unfair, the judge said.
"The KRA to be permitted to recover VAT as it seeks would be unfair and unjust," Justice Kasango said.
The verdict is a major relief to other private, community, and public conservancies, including the KWS, which manages national parks. Other major private conservancies in Kenya include Ol Pejeta, Tsavo, Borana, Ol Kinyei, and Selenkay.
