The Kenya Human Rights Commission has called for tougher action against multinational companies accused of avoiding taxes, saying the country is losing vital revenue needed to fund public services, following a tribunal decision that upheld a Sh1.76 billion tax assessment against Del Monte Kenya Ltd.
In a press statement issued in Nairobi on February 4, 2026, the commission said the ruling was more than a routine tax matter and instead confirmed long-standing concerns about how large corporations operate in the country. KHRC said the case highlighted how multinational firms use internal company dealings to lower their tax bills in Kenya.
“Large multinational corporations operating in Kenya use complex internal transactions to shift profits and reduce the taxes they should pay here, money meant to fund public services,” the commission said.
KHRC broke down the impact of the disputed Sh1.76 billion, saying the amount could have made a major difference if it had been collected and used for public needs. According to the commission, the money could fund “1,760 public school classrooms,” “eight fully equipped county hospitals,” “twenty-nine kilometres of tarmacked road,” and “over 3,500 nurses or teachers for one year,” as well as “multiple rural and peri-urban water projects.”
The commission said the ruling comes at a time when many Kenyans are facing growing financial strain due to higher taxes and the rising cost of living.
“For years, ordinary Kenyans have been told to tighten their belts, pay more VAT, and accept new levies on basic goods and services,” the statement said. It added that it was unfair that some of the most profitable companies continue to challenge paying billions of shillings in taxes.
KHRC said the tribunal decision backed the Kenya Revenue Authority’s review of Del Monte’s related-party transactions and profit margins. The commission noted that the ruling also supports arguments raised in its publication Who Owns Kenya?, which links corporate tax abuse to rising inequality and weak public services.
“When revenue is lost through tax avoidance, children sit in overcrowded classrooms, patients go without medicine, and communities lack clean water,” KHRC said. It warned that tax avoidance by corporations weakens the State’s ability to deliver basic services and shifts the burden to workers, small businesses and low-income households.
The commission disclosed that it has begun reviewing other companies, focusing on the land they occupy, their lease agreements and the amount they pay in land rates and taxes. KHRC said early findings point to revenue losses that could shock the public, especially at a time when households are struggling with “PAYE, VAT, and rising levies on basic necessities.”
In response to what it described as widespread corporate tax abuse, KHRC issued several demands aimed at tightening oversight and accountability.
“It is time to put a stop to multinational corporations looting what rightfully belongs to the people of Kenya,” the statement said, calling on the National Treasury to clearly explain the steps it is taking to hold multinational companies accountable.
The commission urged the Kenya Revenue Authority to require multinational firms to publicly share country-by-country information on revenues, profits, taxes paid, employees and assets. It also called for a well-funded and focused programme to carry out annual transfer pricing audits in sectors seen as high risk.
KHRC further called for tough penalties and possible criminal investigations where aggressive tax avoidance is proven, stricter controls on related-party fees and loans, and the release of an annual list showing the biggest corporate taxpayers as well as companies with large unresolved tax disputes.
Other demands included setting up a public register of large landholdings linked to tax records, taking firmer action against treaty shopping, and ensuring companies known for aggressive tax practices do not benefit from tax incentives, public tenders or state support.
The commission said the Del Monte ruling should serve as a turning point in how Kenya deals with corporate tax abuse, stressing that fair taxation is key to social justice and the proper delivery of essential public services.
