Nairobi, June 15 -- Agribusiness firm Del Monte Kenya Limited has won a Sh270 million tax dispute with the Kenya Revenue Authority (KRA) over deductions linked to foreign exchange losses arising from Sh3.9 billion in shareholder loans.

The Court of Appeal ruled that companies can deduct foreign exchange losses incurred when settling foreign-currency loans through the issuance of shares rather than cash payments.

The decision upholds earlier High Court findings in favour of the fruit juice producer and dismisses an appeal by the KRA Commissioner of Domestic Taxes.

The court found that Del Monte was entitled to deduct Sh401.3 million in foreign exchange losses arising from the settlement of shareholder loans through a debt-to-equity conv...