An employee has been ordered to pay his former employer Ksh. 1,452,112.12, while the employer has been ordered to pay him Ksh. 241,668 for unfair termination.
The employee sued claiming that he was unfairly dismissed for poor performance. His employer argued that he had negligently handled clients' printing machines, causing costly damage, unnecessary repairs and the expense of flying in engineers from India.
The court agreed the employer had valid concerns about his performance but found that it failed to follow the mandatory disciplinary process before terminating his employment, making the dismissal procedurally unfair.
However, the employer also filed a counterclaim seeking to recover the losses allegedly caused by the employee's negligence. Since the employee failed to challenge that evidence during the trial, the court allowed the counterclaim and awarded the employer over Ksh. 1.45 million.
This is a reminder that winning an unfair termination claim does not shield an employee from liability for proven negligence.
Tax waiver has kicked off in Kenya.
Starting today, 1st July 2026, the tax amnesty introduced by the Finance Act, 2026 has officially taken effect.
• How does it work?
KRA shall delete your tax penalties, interest and non-compliance fines,
Provided you pay the principal (actual tax) due.
• What period does it cover?
It covers tax liabilities that arose on or before 31st December 2025.
Under one condition.
- You must clear the principal tax before 1st Jan 2027.
Example.
Say your actual tax bill for 2020 was Ksh 100,000.
You did not pay it because of cash flow challenges.
Over the years, penalties and interests have accumulated to Ksh 30,000.
If you pay the Ksh 100,000 before 2027,
KRA shall take the rubber, and erase the 30,000.
• One question many people are asking:
- Will KRA also waive the penalties for late filing of your 2025 tax return late?
The answer is: Yes.
• So what should you do?
• Check your iTax ledger immediately.
• Identify the principal tax outstanding.
• Pay the principal tax.
• Leave the penalties, interest and fines untouched.
KRA shall erase them.
GMoi,your STANDARD media’s 5 days a week EXTORTIONIST propaganda HEADLINES on me & my administration’s transformative track record will get you NOTHING & NOWHERE.BLACKMAIL to yield to your GREED? NEVER.Kenya belongs to all Kenyans,not you alone.Jaribu 8 days a week. Do your WORST
KRA wants a share of dowry money.
There is a guy called Kamau.
When it was time to buy his wife, he mobilized his most monied buddies.
He put them in a WhatsApp group. The fundraising began.
Those boys were loaded. They were only 35.
By by the time they were done, they had contributed 4.5 million shillings.
Others who were not in the group wired money directly to Kamau's bank account.
The ruracio D-Day arrived.
And as always, the one and only Kikuyu ruracio anthem was tuned.
🎶 Wero... Werokamu guku kwa wa Kanini... Werokamu... 🎶
Before they could finish the song, more than 2,000 people had pulled up.
Wakaanza kutoa funjo. Then one man stood on a stool and announced they could not sit until they had given Kamau top up money to add to the dowry.
The donation book was hurriedly brought. People lined up. Cash started flowing.
By the end of the day, another 2.8 million shillings had been raised.
Kamau took the money and banked it.
Total dowry contribution sitting at his bank account: 8m shillings.
The ceremony became the talk of Gatundu South.
Kamau paid his dowry. Collected his wife. And went home peacefully.
• Lesson 1. Monied friends are good for paying dowry.
I have no clue how. But sometime later, Kamau was marked for a KRA tax audit.
KRA went straight for his bank statements. They found deposits of 8 million shillings.
Immediately, they baptized the entire amount as undeclared taxable income.
Then demanded: 30% income tax. Penalties plus interest.
Total bill: 2.5 million shillings plus.
When Kamau saw the tax bill, he went mad.
He could try to talk but words would not come out. He nearly swallowed his tongue.
When he came back to real life. He shipped a protest letter to KRA.
He explained the money was dowry contribution from his family, friends and well wishers.
- He produced WhatsApp group fundraising screenshots.
- He produced RTGS confirmations.
- He produced the donation book.
- He even produced videos of the ceremony.
Including footage of the Werokamu song.
KRA could not hear any of it. They only wanted 2.5 million.
When Kamau realized KRA was not playing, he ran to court.
He told the Tribunal:
- My lord, look. I have shown KRA where the money came from.
- I have shown KRA who contributed it.
- I have shown KRA the ceremony.
- What more do they want from me?
KRA responded.
And what they said nearly made the judges fall off their chairs.
They argued the evidence was not convincing.
Why?
• Because the 2,000 plus donors had not sworn affidavits confirming that the money they gave was a donation and not payment for goods or services.
The Tribunal looked at the matter in amusement.
Then ruled.
- Kamau had discharged his burden of proof in full.
- KRA had acted unreasonably by ignoring and disregarding the substantial evidence he provided.
- And most importantly: Income tax is a tax on income. It is not a tax on every deposit appearing in a bank account.
The Tribunal found that KRA was wrong to treat all bank deposits as taxable income without first removing proven non income items such as dowry contributions.
The tax demand was killed.
Kamau won.
KRA retreated to Times Tower. And rested.
Case closed.
• Lesson 2.
- Document everything.
- KRA will push. Push hard.
@Wuodnyakach_@o_mwandi One of the effects of having a big ass is that the shit radiates back to the brain and exits out of your mouth In stead of the original anus.
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Finance Bill 2026 is asking for permission to kill local businesses.
Right now, if your company makes profits, you can choose to:
• Reinvest profits back to business
• Or distribute it as dividends to shareholders
Finance Bill 2026 wants that removed. And be replaced by one hard rule. That,
• At least 60% of your profits can be treated as dividends by KRA. Even if you did NOT distribute anything.
“At least” means minimum.
KRA can push it to: 70%, 80% even 90% if they don't like you.
Read that again.
Meaning:
• If you reinvest all your profits in your business, KRA will says:
- Noo. At least 60% must be distributed to shareholders. And since you didn’t, we will assume you did, and demand dividend tax from you.
As a result:
• You are taxed on money you never paid out
• 5%–15% withholding tax on “deemed” dividends
Who is in cooked?
• SMEs reinvesting profits to expand
• Manufacturing businesses expanding
• Real estate firms with paper profits but no cash
Who is safe?
• SEZ companies
• NIFC companies
• REITs
Because their dividends are already exempt.
But for everyone else, this is a forced dividend rule.
The govt is no longer waiting for you to run your business. They want KRA to run it for you.
Is this fair taxation? Or forced extraction?
Niliquit 9-5 ilikuwa inanilipa 150k/month.
Imenitake two years for my company kunilipa 67k/month na nafanya kazi from 7AM to 11PM every day, na sometimes unapata uko na employees wanakupea the hardest time ever, na kuwafuta kazi ni even more expensive.
Every month uko na bills za kulipa in the millions, end month kila mtu ako happy isipokuwa wewe juu uko na another 30 days kuraise another million. Na imagine all this trouble ndiyo net salary yako ikuwe 50k
Sometimes doh haitoshi unasema wacha ulipe the employees alafu KRA utawatumia yao by 9th, unajaribu kupata loan bank inakataa juu hauna shamba ya security, inafika 15th unapata weird calls, unashika unapata ni KRA, unawaambia utawalipa next Friday, wanakuambia Friday haiwezekani, labda Thursday. Inabidi uongee with one of your clients akulipe mapema, anakusomea akikuambia biz haifanywi hivo but anaitikia eventually.
Next week inafika unalipa KRA, SHA,NSSF, Housing Levy. Unahave some peace kidogo only to realize that next week ni end month na this time uko na deficit kubwa kushinda last month, and the cycle continues.
Kama uko 9-5 na uko sawa, I can’t advise you to quit. Heri ujaribu entrepreneurship in parallel but usiquit job yako. It feels good when you tell people that you quit your job to pursue your dream but you also need to understand that your dream will take time before it starts paying the bills, and it might also die before you eat a shilling from it.