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Mjengo Limited v. Commissioner of Domestic Tax

(2016) JELR 99038 (CA)

Court of Appeal  •  Civil Appeal 85 of 2014  •  2 Dec 2016  •  Kenya

Alnashir Ramazanali Magan Visram, Erastus Mwaniki Githinji, Stephen Gatembu Kairu



1. This is an appeal from a decision of the High Court (Musinga, J, as he then was) upholding a decision by Nairobi Area Local Committee that machinery in respect of which the appellant had claimed investment deduction did not qualify for such tax deduction.


2. The appellant, Mjengo Limited, carries on the business of importing rice into Kenya. Upon importation, it says that it cleans that rice; sorts and sizes it; fumigates it for preservation; brands it and then packages it. With a view to enhancing its operations, the appellant imported into Kenya new machinery worth Kshs. 1,513,752.00 in year 2006. The appellant then deducted, as Industrial Building Allowance, that expenditure from its profits for the year 2006.

3. The Commissioner of Domestic Taxes, the respondent, an organ of the Kenya Revenue Authority, subsequently undertook a tax audit of the appellant and disallowed the appellant?s claim for Industrial Building Allowance. Accordingly, the respond…

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