The Kenya Revenue Authority (KRA) has secured a major victory in court after Appeal Court judges reversed a High Court declaration that Value Added Tax (VAT) is not payable on transactions for the sale or purchase of land and buildings, whether commercial or residential.

The Court of Appeal said on Friday that there was no ambiguity in the tax laws and that the supply of commercial premises was not exempt from VAT.

In the precedent-setting ruling, the judges also set aside a High Court order to KRA to refund a property buyer, Mr David Ndegwa, sh11.2 million paid as VAT.