Kenyan Churches Face Taxation as Doctor Fights for Constitutional Rights

The churches in the country have begun to be taxed on the income they collect as offerings and tithes if the High Court agrees with a Nakuru doctor who claims that not taxing them violates the Constitution.

Dr. Magare Gikenyi has filed a case in the High Court of Nairobi challenging sections of the Income Tax Act that allow churches to be exempt from paying taxes on offering and tithes.

In his case, Dr. Gikenyi argues that Section 3(2) of the Income Tax Act contradicts the Constitution, which states that every Kenyan must pay taxes regardless of the sector they serve.

Specifically, he targets Section 13 of the Income Tax Act, which exempts certain individuals and organizations, including churches, from paying income tax.

In his court documents, he argues that tithes, offerings, and contributions should be subject to taxation to fulfill the constitutional requirement of non-discrimination in tax payment.

He seeks the court to declare that Section 3(2) of the Income Tax Act discriminates and, therefore, is against the Constitution and should not be in existence.

In his case, the doctor states that he wants churches to be listed among organizations that pay taxes, citing Article 201(b) of the Constitution, which mandates every Kenyan to pay taxes.

Dr. Gikenyi targets Section 13 of the Income Tax Act, claiming that it discriminates and contradicts the Constitution because it allows some groups of people and organizations to be exempt from paying taxes.

“Tithes, offerings, and other donations, as well as other individuals and organizations allowed not to pay taxes, should pay because Article 201 of the Constitution says no one should be discriminated against,” says Dr. Gikenyi in the court documents.

He requests the court to declare that Section 3(2) of the Income Tax Act discriminates, violates the constitution, and should not exist because it allows some people not to pay taxes while others do.

He argues that discrimination in tax payment adds a burden to those who pay taxes in Kenya.

In Kenya, tithes, offerings, and contributions are not considered as income and are not recognized by tax laws.

In his case, Dr. Gikenyi argues that wealthy individuals, charitable organizations, churches, mosques, temples, and some non-governmental organizations benefit greatly because they are exempt from paying taxes while still being able to contribute to income tax.

Dr. Gikenyi wants the court to issue an order preventing the government from implementing any law that allows an individual or organization not to pay income tax.

He has named the Attorney General, Minister of Finance and Economic Planning, Kenya Revenue Authority, Senate, and National Assembly as defendants in the case, which he has involved the National Council of Churches of Kenya, the Kenya Conference of Catholic Bishops, the Evangelical Alliance of Kenya, and the Supreme Council of Muslims in Kenya.