Sterling & Wilson Renewable Energy Limited has announced a favorable development regarding a tax demand from Kenyan authorities. The demand for calendar years 2020 to 2023 has been reduced from approximately INR 51.10 Crore to approximately INR 26.50 Crore, including interest and penalties. The company is currently evaluating the order to determine its future course of action.
Kenyan Tax Dispute Update
An order has been issued by the Commissioner of Legal and Board Services Department, Tax Dispute Resolution Department, Kenya Revenue authorities. This order pertains to the demand for calendar years 2020 to 2023.
Revised Demand Amount
The initial demand of approximately INR 51.10 Crore has now been reduced to approximately INR 26.50 Crore, which includes interest and penalties. This reduction is primarily attributed to a lower allocation of profits to the Kenya Branch. The new demand amount is based on an order dated September 17, 2025 with the updated order occurring on December 12, 2025.
Impact on Taxation
Correspondingly, there is a reduction in corporate tax and withholding tax implications. The demand related to VAT and PAYE (Pay As You Earn) remains unchanged compared to the previous order.
Next Steps
Sterling and Wilson Renewable Energy Limited is currently evaluating the implications of this order and determining the appropriate course of action.
Source: BSE
