Kenya Appeals Court Suspends Bid to Tax ECP After Asset Sale

Kenya’s Court of Appeal temporarily suspends a High Court order that Emerging Capital Partners pays tax on profits from the 2017 disposal of its stake in restaurant chain Java House.

• It also orders the private equity fund to deposit security equal to 30% of the 2.5 billion-shilling tax claim demanded by Kenyan tax authorities
• NOTE: A High Court judge ruled in November that Kenya Revenue Authority was “within the law” to demand tax. Although ECP owned Java House through a Mauritius-based holding company, the tax agency argued that the business was managed from Kenya and that its value was created ...