Nairobi, Feb. 7 -- The taxman has lost a Sh2 billion tax claim from the Kenya Ports Authority (KPA) over the procurement of some cargo handling equipment between 2018 and 2022.

In a ruling delivered on January 26, the Tax Appeals Tribunal dismissed the KRA's assessment of Sh1,993,582,700 in withholding tax plus penalty and interests, concerning two multi-billion shillings contracts for the supply of a tugboat and cranes by a foreign contractor to the ports authority.

The six-bench tribunal agreed with the KPA's assertion that it was supplied with goods-a tug boat and cranes- and not services for which the ports authority would have made payment for professional, management, or training fees which would then have attracted a withholding ...