Kenya's High Court ruled in October 2025 that digital platform operator Sendy Limited must account for VAT on the full amount paid by customers, overturning a Tax Appeals Tribunal decision and upholding a VAT assessment of KES 82.2 million.

The High Court determined in Commissioner of Domestic Taxes v. Sendy Limited (Income Tax Appeal E137 of 2024) that a digital platform operator exercising full control over transactions constitutes the principal supplier of services rather than an intermediary. This classification requires the platform to charge and remit VAT on the entire customer payment, not merely on commission or fees retained.

The decision establishes precedent for VAT treatment of digital platforms in Kenya's growing digital economy, clarifying that transactional control—rather than the underlying service provision—determines VAT liability. The ruling reverses the Tax Appeals Tribunal's finding that had favoured the platform's position on limited VAT exposure.