A High Court has ordered Equity Bank to pay the Kenya Revenue Authority Sh234 million after dismissing the lender’s appeal on the findings of the tax tribunal that monies written off as bad debts be treated as part of corporate tax.
Justice David Majanja ruled that Equity Bank had failed to demonstrate that it had exhausted all avenues to collect the debt. The judge argued that the bank was required to meet one or more of the prudential guidelines issued by the Central Bank of Kenya to satisfy the criteria for deducting bad debts.
