KENNETH NJUGUNA | SENIOR ASSOCIATE | ANJARWALLA & KHANNA
Kenneth is a senior associate with Anjarwalla & Khanna in the Corporate and Commercial Department. He has specialist skills in Kenyan and cross border taxation.
Before Joining A&K, Kenneth worked in the tax practice at PricewaterhouseCoopers in Kenya and the United Kingdom. He routinely advises clients on all tax aspects of mergers and acquisitions, joint ventures and corporate restructurings, and regularly handles cross-border transactions. Kenneth also assists clients in complex tax audits and disputes with the Kenya Revenue Authority. He also has considerable experience in corporate matters and has advised domestic and regional clients on a variety of commercial transactions.
He works with a wide variety of multinational clients including oil and gas companies, power and utility firms, private equity funds, banking and insurance companies, real estate developers and public benefit organizations. Kenneth is an Advocate of the High Court of Kenya, a Certified Public Accountant and a Certified Public Secretary.
MEMBERSHIP IN PROFESSIONAL SOCIETIES
2014: Certified Public Secretary, (CPS) Graduate
2010: Postgraduate Diploma in Law, Kenya School of Law
2010: Certified Public Accountant, (CPA) Graduate
2009: Bachelor of Laws. LL.B, Second Class Honours (Upper Division), Moi University
Jan 2017 – DATE: Senior Associate, Anjarwalla & Khanna, Nairobi
Aug 2014 – Dec 2016: Principal Associate, Anjarwalla & Khanna, Nairobi
2010 – 2014: Senior Tax Consultant, PricewaterhouseCoopers, Kenya
2012: Tax Consultant, PricewaterhouseCoopers United Kingdom (Hays Galleria, London)
2008: Summer Pupil, Kaplan & Stratton Advocates
AREAS OF EXPERTISE
- Corporate and Commercial
- Corporate M&A
- Energy, Natural and Renewable Resources
- Acting for the sponsors of the 300MW Turkana wind power project (the largest power generation project in Kenya, designed to provide at least 17% of the country’s power demand) including providing tax structuring advice on the equity structure for the project as well as various tax advice matters relating to various engineering, procurement and supply agreements (EPC) with Vestas (turbine supply), Siemens (electrical connection networks and substations), Civicon (210 km of road contruction), and Seco (village construction) as well as interface with the Ministry of Finance, Ministry of Energy and the Kenya Revenue Authority on VAT issues relating to the project. This transaction won the Project Finance International (PFI) African Renewable Deal of the Year Award 2014.
- Advising Alliance One Tobacco, an international manufacturer of tobacco products on the tax and regulatory implications in relation to cross border sales within East Africa of unprocessed green leaf tobacco.
- Acting for ADC Financial Services & Corporate Development Limited (a subsidiary of ADC African Development Corporation AG), a Mauritian entity, on its disposal of a 38.74% stake in Resolution Health East Africa Limited (RHEAL) (a Kenyan entity) to Leapfrog Investments, including advising on the most tax efficient structure to exit its investment in RHEAL.
- Advising on an acquisition by HNZ Group, Inc. of certain Tazk Aviation subsidiaries and assets consisting of aircraft situated in Kenya and Tanzania on various tax issues including the most suitable holding company jurisdiction, various VAT, excise duty and corporation taxes from a Tanzanian and Kenyan tax perspective.
- Advising a power generating company on a proposed project in Tanzania, including advising on the tax regime applicable to the entity in Tanzania and the most suitable jurisdiction to establish a holding company for the Tanzanian project company.
- Advising Regus Group Limited, an international company involved in leasing virtual offices on the acquisition of the African business (situated in of Worldwide Landmark Limited, including providing tax advice on the acquisition structure and negotiating tax warranties and indemnities in respect of the transaction.
- Acting in a transaction in the acquisition by a French listed company of three Kenyan companies with operations in Uganda and Tanzania, including providing tax structuring advice.
- Advised an Australian downstream oil and gas exploration entity with operations in Kenya with respect to tax implications arising from a farm-out transaction of their interest in block L6 in the Lamu basin. The transaction related to farm-out of interest relating to a portion on the onshore part of the block (which is partly onshore and partly offshore) and was the first of its kind in Kenya.
- Kenneth worked in a specialist team drawn from the World Bank / IFC and PwC UK involved in preparing the high profile Paying Taxes publication for 2013. The project entailed a detailed review of tax systems for 185 economies from around the globe to benchmark the tax systems and provide insights on tax reform and the ease of paying taxes in these jurisdictions. The Paying Taxes study is used around the world to engage Governments on their tax reform agenda and by investors to assess the ease of doing business in these jurisdictions.
- Provided tax structuring and advisory services to a local renewable energy company which had been appointed a preferred bidder by the Geothermal Development Company of Kenya (GDC) for the supply and installation of a 30 MW Geothermal Modular plant at the Menengai Geothermal field on a Build Own Operate (BOO) basis.
- Provided pre-bid tax advisory and structuring services to Toyota Tsusho Corporation, a Japanese energy company ranked as one of the largest trading companies in the world. The entity had been pre-qualified to bid for construction of a 560 MW (four phases of 140 MW) geothermal power plant in Olkaria, Kenya under a Public Private Partnership (PPP) arrangement.
- Assisted in defending a listed telecommunication services company against an assessment by the Kenya Revenue Authority with respect to tax treatment of license fee amortization. The assessment was in excess of KES 700 Million and Kenneth was involved in preparing technical arguments, the objection to the assessment as well as preparing appeal documents to the Local Committee.
- Assisted in representing a State Corporation operating in the petroleum industry at the Local Committee and successfully obtained a tax deduction of over KES 2 Billion relating to damages awarded to its suppliers through arbitration proceedings. The matter was approached by way of a complex mechanism entailing technical arguments and an application under Section 90 of the Income Tax Act. The ruling by the Local Committee set a precedent on the tax deductibility of compensatory damages in Kenya.
- Prepared technical arguments in a dispute between the Kenya Revenue Authority and a telecommunication services company relating to Excise duty on mobile money transfer services.
- Kenneth was the lead tax consultant assisting one of the largest insurance companies in East Africa split their composite insurance business across Kenya, Uganda and Tanzania into separate general insurance and life insurance businesses for compliance with legislative changes to the Insurance Act. The role involved providing tax efficient options for structuring the business especially with regard to transfer of assets and liabilities, analysing stamp duty implications and advising on transfer pricing implications arising from the transaction.
- Prepared transfer pricing documentation for one of the largest entities engaged in downstream oil and gas exploration with interests in over six explorations blocks in Northern Kenya. Kenneth also undertook complex benchmarking studies for unique related party transactions and assisted in defending certain transfer pricing policies and a Dutch hub structure against queries raised by the Kenya Revenue Authority.
- Successfully assisted a listed bank in a transfer pricing audit and resolving a transfer pricing assessment by the Kenya Revenue Authority. This resulted in a significant reduction in the quantum of the assessment. Kenneth was also involved in discussions with the KRA regarding the transfer pricing implications of a recent move by the bank from a management fee model to a franchise fee model.
- Assisted a listed oil marketing company in preparing technical arguments and applying for a ruling from the Kenya Revenue Authority regarding the applicability of withholding tax under the Kenya – France DTA on management and professional fees paid by the entity to its headquarters in France.
- Prepared transfer pricing documentation (in conjunction with PwC France) for one of the largest listed oil marketing companies in Kenya. The assignment involved analysis of complex and multiple related party transactions peculiar to the oil marketing industry.
- Assisted in updating the transfer pricing documentation for East African Breweries Limited covering a number of subsidiaries in Kenya, Uganda and Tanzania. The related party transactions covered focused on management services, contract manufacturing operations, loans and sale of various raw materials and products.
- Kenneth was the lead tax consultant providing corporate tax compliance and advisory services to a large telecommunications company, which is ranked as one of the largest corporate taxpayers in East Africa.
- Kenneth has been a contributor to the World Bank Doing Business survey in 2011, 2012, 2013 and 2014.