Transfer Pricing Advisory Services in Kenya
Arm's length pricing strategies and documentation for multinational operations
What You Need to Know
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Transfer Pricing Advisory Services in Kenya
Transfer pricing rules in Kenya require that transactions between related parties, particularly cross-border transactions within multinational groups, be conducted at arm's length. The Income Tax Act and the Income Tax (Transfer Pricing) Rules, 2006 (as amended) establish the framework for determining arm's length prices and the documentation requirements for related party transactions.
LHK Advocates advises multinational companies on transfer pricing compliance, documentation, and dispute resolution. We help companies establish defensible transfer pricing policies, prepare the required documentation, and respond to KRA audits and adjustments. Our advisory is aligned with both Kenyan rules and the OECD Transfer Pricing Guidelines.
KRA has significantly increased its focus on transfer pricing in recent years, conducting regular audits of multinational companies and applying transfer pricing adjustments that can result in substantial additional tax assessments. Proactive compliance and robust documentation are the best defence against these adjustments.
Key Benefits
Audit Defence
Robust documentation prepared in advance provides the strongest defence against KRA transfer pricing adjustments.
Policy Design
We design transfer pricing policies that are commercially sensible, tax-efficient, and defensible under Kenya's arm's length standard.
Documentation Compliance
We prepare all required transfer pricing documentation including master files, local files, and country-by-country reports.
Dispute Resolution
We represent companies in transfer pricing audits, objections, and appeals, negotiating with KRA to reduce or eliminate adjustments.
Frequently Asked Questions
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