Breaking update on new fuel prices:
EPRA has announced new fuel prices effective from May 19 to June 14, 2026.
New prices:
Petrol remains at Sh214
Diesel down by Sh10 to Sh232
Kerosene up by Sh36 to Sh191
KRA is not playing with KTDA.
KTDA buys and sells tea leaves. Not tea. Tea ni chai. Chai ni ya kukunyua. Tea leaves ni majani ya chai. Kirui are we together?
Now,
KTDA was growing very fast. They wanted the Gulf people to taste the classical definition of proper Kenyan tea.
In 2008, they opened a branch in Dubai. Branch role, to market and sell tea in the Gulf.
In this setup, KRA was eating well. Because branches are like agents. They sell and send all profits back home.
So Dubai sold tea. Profits came back to Kenya. KTDA consolidated everything. And handed KRA a biig fat cheque.
KRA was extremely happy.
In 2014, KTDA got tired of tickling KRA.
They discovered.
- If they register a separate company in Dubai
- Gulf profits wonโt be taxed in Kenya
- And Dubai tax was 0% too
So no taxes nowhere.
Directors said: Perfect. Do it. Fast!
As they are doing all this, they are unaware of one dangerous sentence sitting quietly in Kenyan tax law.
It reads:
โข Any company managed and controlled from Kenya is a Kenyan resident company.
The Dubai company was registered. Life was good. Money was flowing. Zero income tax.
Next year, KRA noticed their cheque suddenly got thinner.
They asked KTDA Kenya, ndugu ni nini inaendelea hapa?
KRA got the shocking news of its life from KTDA.
- We do not have a problem paying taxes. But the Dubai branch has been upgraded to a full Dubai company. And profits are no longer coming home to be taxed.
KRA could not believe it. It returned to Times Tower. And embarked a fault finding mission.
In 2021, they found out:
- Directors of KTDA Dubai were all Kenyans
- They lived and drank tea in Kenya
- They controlled every single affair of KTDA Dubai from Kenya
Wakasema baas, nini ingine tunatafuta?
They invoked the one dangerous sentence. You remember it?
โข Any company managed and controlled from Kenya is a Kenyan company.
KRA declared KTDA Dubai a Kenyan company
โข Tax demanded 122M
KTDA ran to court with Dubai registration papers.
The judges questioned KRA why it wanted to harvest where Kenya did not plant?
KRA responded: My Lords, if your hen lays eggs in your neighbourโs land, is that egg yours or your neighbourโs?
Judges paused.
Then sided with KRA.
KTDA wakaabiwa walipe tax.
Case closed.
Lesson.
โข Structure your offshore company properly.
โข Or KRA will structure it for you.
What a privilege it is to afford a gym, buy healthy food, pay bills, have legs that walk, eyes that see, a brain that functions, work every day, and take our bodies to their full potential.