Double Tax Avoidance Agreements: The Emerging Jurisprudence in Kenya

Recent High Court decisions are redefining how Double Tax Avoidance Agreements (DTAAs) are interpreted and applied in Kenya.

This insight explores the emerging jurisprudence from the McKinsey Kenya, Total Kenya, and Nairobi Bottlers cases, highlighting the courts’ position on treaty entitlement, withholding tax exposure, permanent establishment thresholds, and the limits of Kenya’s taxing rights in cross-border transactions.

The publication also examines the growing importance of economic substance and Limitation of Benefits (LoB) requirements under Section 41 of the Income Tax Act, and what these developments mean for businesses operating across jurisdictions.