Nairobi, April 6 -- The Tax Appeal Tribunal has upheld a Sh47.8 million tax demand against Rafiki Microfinance Bank Limited concerning suspended interest from non-performing loans, marking a significant victory for the Kenya Revenue Authority (KRA) in a case that highlights tax obligations for lenders.

The tribunal dismissed the bank's appeal, confirming income tax assessments of Sh47.8 million and an additional Sh159.7 million in penalties, placing the total tax liability at Sh207.6 million.

The dispute originated from a broader tax case initially involving over Sh1.37 billion, covering corporate income tax, PAYE, withholding tax and excise duty for the 2015 and 2018 financial years.

Most contested issues were later settled by mutual ...