Tax Appeal Tribunal Chairman Eric Nyongesa. Photo | courtesy.
The Tax Appeal Tribunal has ruled that the issuance of a Personal Identification Number (PIN) to the Kenya Roads Board Fund (KRBF) by the Kenya Revenue Authority (KRA) was unlawful, declaring the resulting tax assessment null and void.
In a judgment delivered on May 2, 2025, the Tribunal found that the Kenya Roads Board (KRB), a state agency mandated to oversee the country’s road network, had been improperly issued two PINs one in its corporate capacity and another for the KRBF, a fund under its management but not a separate legal entity.
“The finding of the Tribunal in this regard is that issuance of the Appellant by the Respondent of two PINs was illegal, first on the basis that a taxpayer can only have one PIN at one particular time and second the fund is not a body corporate capable of being issued with a PIN,” the ruling stated.
The Tribunal further found that the issuance of a separate PIN to the KRBF contravened the principles of tax law administration, including consistency, facilitation of compliance, and effective tax collection.
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As a result, the Tribunal issued a final decision ordering the cancellation of the PIN issued to the KRBF within 90 days of the judgment, pursuant to Sections 10 and 14 of the Tax Procedures Act.
The judgment further clarified that the cancellation of the PIN would render the related tax assessment null and void.
“Consequently, the Tribunal finds that the Respondent erred in its issuance of a PIN to Kenya Roads Board Fund,” the ruling concluded.
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The case arose after the KRA issued a tax assessment in 2023 against the KRBF, totaling Sh4.1 billion for the period between July 2014 and June 2022.
The Kenya Roads Board challenged the assessment, arguing that the KRBF was not a distinct legal or taxable entity and that the tax claim exceeded the statutory five-year limit.
