Court Gives KRA New Chance to Pursue Ksh 1.2 Billion Claim Against Unilever

The High Court has given the Kenya Revenue Authority (KRA) the go-ahead to file a new appeal against Unilever Kenya Limited in a case about customs taxes that is worth Ksh 1.2 billion.

Justice Eric Ogola made this decision on September 15, 2025. He stated, “The Kenya Revenue Authority can file and serve a Notice of Appeal within 14 days.”

The judge also gave the Kenya Revenue Authority 60 days to file and serve the record of appeal from the date of filing the notice.

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Kenya Revenue Authority’s Dispute with Unilever Kenya Over Ksh 1.2 Billion in Customs Taxes on Royalties and Flavor Powders

The Kenya Revenue Authority said Unilever Kenya has to pay customs taxes of Ksh 1.2 billion on the payments and products used to make Royco Mchuzi Mix and Knorr Cubes.

According to court filings, Unilever Kenya paid royalties to its parent company, Unilever Global IP Limited, so it could use intellectual property rights to make these products in Kenya.

The Kenya Revenue Authority said these royalties should be considered as customs taxes under the East African Community Customs Management Act.

The Tax Appeals Tribunal had already said no to the Kenya Revenue Authority’s case.

“The Kenya Revenue Authority did not prove its case as required by law, and the assessments were not valid.” The Tribunal said, adding “the Kenya Revenue Authority did not show that the royalty payments were a condition of sale for the imported goods.”

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Unilever Kenya’s Tax Dispute with the Kenya Revenue Authority (KRA) Regarding Royalty Payments

KRA went to the High Court to challenge the Tribunal’s decision hoping the court to cancel the Tribunal’s ruling and send the matter back for a decision by a different group of people.

Unilever Kenya says the royalty payments were for property that you cannot touch because it is not subjected to customs duty.

“The flavor powders do not have to pay duty.” Stated the company.

The High Court’s decision means the Ksh 1.2 billion case will now go to a hearing on appeal.

KRA now has 14 days to file its notice and 60 days to submit the appeal record.

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High Court Reopens KRA Vs Unilever Ksh 1.2B Tax Battle on Royalties, Royco/ PHOTO FILES.