Nairobi, April 30 -- Tullow Oil is fighting off a Sh21.9 billion ($170 million) tax demand from the Kenya Revenue Authority (KRA), in what mirrors a tax tussle the British company faced in a project in neighbouring Uganda.

The company claimed that the tax demand is unmerited and unfair, adding that it will jointly challenge it with Gulf Energy, which bought its project in Turkana, in a Sh15.5 billion ($120 million) deal closed in September 2025.

KRA claims that Tullow Kenya BV, the local subsidiary of the British firm, underpaid capital gains tax (CGT) from the sale of $120 million (Sh15.5 billion) of the project. Additionally, the taxman has said that Tullow underpaid value added tax (VAT) while undertaking the Turkana project.

The Sh...