Nairobi, Aug. 9 -- The Kenya Revenue Authority (KRA) has been blocked from demanding taxes on service charge collections by building and estate managers following a four-year dispute with Nextgen Mall Management Company.

The Tax Appeals Tribunal ruled that Nextgen Mall Management Company only handled funds as a conduit for unit owners to obtain basic upkeep services like grass cutting, security, bin cleaning, and management fees.

It ruled that the monies it held from service charges and property owners' contributions were not earnings that should attract income tax and value-added tax (VAT), setting a precedent in an era that has seen the rise of management companies taking charge of upkeep in gated communities, office blocks and apartm...