This alert brings to your attention the Tax Appeals Tribunal’s (“the TAT” or Tribunal”) judgement in the case of Sidian Bank Kenya Limited (Appellant) vs. Commissioner of Domestic Taxes (Respondent) on the imposition of Excise Duty on M-pesa transactions, interchange fees and income from credit cards.


The Respondent conducted an audit of the Appellant’s tax affairs which included an audit of Excise Duty returns for the period January 2016 to September 2018. Following the audit, the Respondent issued an assessment demanding unpaid Excise Duty amounting to KES 48,130,740. The Appellant acknowledged underpayment of KES 29,910,488 settled the same and lodged an objection on the balance. The Respondent confirmed the assessment of KES 10,000,058 as follows: