The Kenya Revenue Authority (KRA) could miss out on tens of millions of shillings in tax revenue from the sale of Wananchi Group Holdings Ltd to Axian Telecom Ltd (ATL).

This follows revelations last week that ATL is seeking to acquire the entire business of Wananchi Group, which includes internet service provider Zuku, in a multi-billion-shilling deal.

Both Axian Telecom and Mwananchi Group are incorporated in Mauritius, which has raised concern that KRA could miss out on collecting tens of millions of shillings in tax revenue from the deal.

“The parties have submitted that the transaction is an opportunity for the Acquiring Group to expand its footprint in East Africa by leveraging on an established and trusted Brand,” stated a regulatory notice on the deal seen by the Financial Standard.

“Further, the transaction affords the Acquiring Group an opportunity to enter into new digital markets and optimise the use of the Merging Parties’ existing assets where synergies can be leveraged.”

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