Nairobi, June 25 -- The High Court has overturned a Sh221 million tax assessment against East African Seed Company, handing the agribusiness a major victory in a dispute over value-added tax and withholding tax liabilities linked to a 2020 corporate restructuring.

The court set aside a decision by the Tax Appeals Tribunal and an earlier objection decision by the Kenya Revenue Authority (KRA), finding that the company had provided sufficient evidence to support its position on several contested tax issues.

The dispute arose after KRA assessed East African Seed for Sh221.2 million in VAT and other tax liabilities following an audit covering the period between 2016 and 2020.

A major issue was the transfer of the company's seed business to...