The Finance Act, 2020 amended the  Income  Tax  Act  (Cap 470) (Hereinafter the ITA) by inserting Section 12 D which introduced a new Tax known as Minimum Tax at the rate of 1% of the gross turnover effective 1st January 2021.

To implement the said  amendment,  the  Kenya  Revenue Authority   (KRA)   in   January,   2021,   published   the “Guidelines on Minimum Tax” whose centrality was  the definition of Gross Turnover. 

Vide the Constitutional Petitions No. E005  and  001  of 2021,  the Petitioners filed a petition with the High Court in Machakos challenging the constitutionality of the amendments as introduced under Section 12D of the ITA.  In support of its Petition, the Petitioners relied on the following grounds in support of their case.