Nairobi, July 17 -- The Supreme Court has upheld the government's decision to grant tax exemptions to Japanese companies, consultants and workers involved in development projects in Kenya, dismissing a petition that challenged the legality of the move.

The apex court found that petitioner Eliud Karanja Matindi failed to prove that the tax waiver, granted by the National Treasury through a 2021 Legal Notice, was unconstitutional or discriminatory.

The court held that income earned from foreign sources by persons working in Kenya under technical assistance or development services agreements can lawfully be exempted from income tax under the Income Tax Act.

"The Legal Notice did not also create any rule, order or regulation in the manner ...