The Kenya Revenue Authority (KRA) has been ordered to refund Mayfair Insurance Company Limited, a company founded by former Gatanga MP Peter Kenneth, KSh9.7 million in overpaid income taxes by the Tax Appeals Tribunal (TAT).
In a judgment delivered on October 24, 2025, Tribunal Chairperson Christine Muga found that the Commissioner of Domestic Taxes violated Section 47 of the Tax Procedures Act (TPA) by failing to process Mayfair’s refund claim within the 90 days required by law.
The tribunal allowed the appeal (Tax Appeal No. E1328 of 2024), ruling that the tax authority grossly breached legal timelines by taking 1,094 days, over three years, to reject a refund application that should have been finalized within 90 days.
KRA Ordered to Pay Ksh 9.7 Million to Mayfair Insurance Company
Mayfair Insurance had applied for a refund of KSh9,716,993 between August and September 2021 for overpaid taxes covering the 2016-2019 financial years. However, KRA rejected the application in October 2024, citing a “pending debt issue” without providing clear details or evidence.
Mayfair Insurance argued that the Commissioner erred in issuing a rejection order dated October 2, 2024, which was issued long after the timelines prescribed by Section 47(2) of the Tax Procedures Act (TPA).
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The TPA stipulates that the Commissioner “shall ascertain and determine an application” for tax refund within ninety days.
The tribunal ruled that the long delay rendered the refund “deemed approved” by operation of law.
It further stated that KRA acted unlawfully by failing to give valid reasons for the rejection, thereby violating Mayfair’s right to fair administrative action under Article 47 of the Constitution.
“The Respondent failed to determine the application within the mandatory statutory timeline of 90 days, and accordingly, the application was deemed ascertained and approved,” the judgment read in part.
The tribunal also faulted KRA for instructing Mayfair to reapply for the refund after resolving an unspecified debt, describing the directive as “suspicious” and potentially a “deliberate delay tactic” intended to push the claim beyond the five-year statutory limit, after which refund rights lapse.
As a result, the tribunal ordered KRA to refund the KSh9.7 million within 30 days; failure to the amount will attract monthly interest at the rate of 1% until payment is made in full.
About Mayfair Insurance
Mayfair Insurance Company Limited is a Kenyan insurer founded by Peter Kenneth, a former Gatanga Member of Parliament (MP) and 2013 presidential candidate, in 2005. The company offers a range of general insurance products, including motor, medical, property, marine, and engineering covers.
Peter Kenneth, who previously served as Assistant Minister for Finance and Planning and Chairman of the Kenya Football Federation (KFF), oversaw the company’s regional expansion to Tanzania, Zambia, and Rwanda through Mayfair subsidiaries.
In 2017, the firm expanded into the banking sector through Mayfair Bank Limited, which later entered a partnership with Abu Dhabi Islamic Bank (ADIB).
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