The High Court has ordered Jomo Kenyatta University of Agriculture and Technology (JKUAT) to pay KSh 296 million in unpaid Value Added Tax (VAT) and interest related to the purchase of the ICEA building in Nairobi from ICEA Lion Life Assurance Company Ltd. The dispute, which began after the 2015 sale, centers around a VAT obligation that JKUAT was expected to handle as part of the KSh 1.85 billion sale agreement.
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Although JKUAT sought a VAT waiver and received confirmation of zero-rating from the Kenya Revenue Authority (KRA) in 2017, ICEA Lion requested indemnification in case KRA reversed its decision. JKUAT issued a Deed of Indemnity in 2019. Later that year, KRA demanded VAT from ICEA Lion, prompting the insurance company to settle the amount with KRA, paying KSh 296 million. ICEA Lion then sought reimbursement from JKUAT, which declined, citing the earlier zero-rating confirmation. This led ICEA Lion to file a lawsuit.
In its October 2024 ruling, the court directed JKUAT to honor the indemnity and pay the KSh 296 million to ICEA Lion.
