NAIROBI, Kenya, Apr 11 – Resolute Business Advisory Ltd has formally written to the Kenya Revenue Authority (KRA) seeking clarification on whether the annual laboratory license fees charged by the Kenya Medical Laboratory Technicians and Technologists Board (KMLTTB) should be subjected to Value Added Tax (VAT).
In the letter dated April 7, 2025, addressed to the Commissioner of the Domestic Taxes Department, Resolute argues that the charges imposed by the Board do not constitute a taxable supply under the VAT Act, 2013.
“KMLTTB, as a regulator, is not providing any taxable supply to the regulated that can be subjected to VAT,” read the letter in part.
KMLTTB, established by an Act of Parliament in 2000, oversees the training, licensing, and regulation of medical laboratory technicians and technologists in Kenya.
Since January 1, 2025, the Board has been applying the standard VAT rate of 16% on its members’ annual licensing fees, a move that has sparked concern within the health sector.
According to Resolute, the fees do not fall within the definition of “business” or “taxable supply” as outlined in the VAT Act.
“We opine that annual laboratory licence fees charged by KMLTTB to its members are not subject to VAT.”
The taxman has yet to issue a public response.
