KRA vs Biwott’s Daughter: Sh25 Million Tax Battle Rocks KEY Trust

The Kenya Revenue Authority (KRA) is locked in a tax dispute with Knowledge Empowering Youth (KEY) Trust, a charity founded by Rita Field-Marsham, daughter of former Cabinet minister Nicholas Biwott.

The dispute arose after KRA rejected the trust’s application to renew its income tax exemption in March 2026. The authority raised concerns about payments made to KenSAP Limited, a separate entity linked to its education programmes, according to a report by the Daily Nation published on October 24, 2026.

KEY Trust runs programmes aimed at improving access to education in Kenya. Its KEY Libraries initiative supports public primary and secondary schools with books, computers, furniture and other learning materials. Its Kenya Scholar Access Program (KenSAP) helps academically gifted students from disadvantaged backgrounds access university education.

KRA questioned whether payments made to KenSAP Limited met the legal requirements for charitable tax exemption. The trust challenged the decision before the Tax Appeals Tribunal.

During the case, KRA raised further concerns, including more than Sh25 million in overseas spending, payments to staff and trustees, non-resident beneficiaries and the trust’s accumulation of funds. The authority also questioned whether the organisation had provided sufficient supporting financial documents.

However, KEY Trust argued that these additional allegations went beyond the reasons given in the original decision to reject its application. It asked the tribunal to remove the new claims from the case, saying it had not been given a fair opportunity to respond to them during the initial review.

The Tax Appeals Tribunal ruled in September 2026 that KRA could not introduce new grounds for rejecting the exemption at the appeal stage. It ordered the removal of the paragraphs containing the additional allegations from the authority’s response.

The tribunal did not stop KRA from investigating the concerns. It said the authority could issue a fresh, properly explained decision on those matters, allowing the trust an opportunity to respond.

Under Kenya’s Income Tax Act and the 2024 rules governing charitable organisations, tax exemptions are available to qualifying institutions that use their income for approved public-benefit purposes, including education and poverty relief.

The tribunal is expected to proceed with the trust’s appeal. The ruling did not settle the underlying dispute over whether KEY Trust qualifies for the tax exemption.

Source: https://www.facebook.com/share/19WG3JvgXj/

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