There was a lacuna in tax law concerning computer software before 2010 when section 31B of the Second schedule was enacted. This section allows capital deduction on computer software at 20%. The petitioner CFC Stanbic had been claiming diminution in value at 33.33% while the revenue authority had been allowing the deduction at 12.5% a decision that was upheld by the Local committee. The court held that the demand was based on agreed interpretation of the law which was applied to other banks.
Click link for full case – http://oldsite.kra.go.ke/index.php/kra-court-rulings/nairobi-constitutional-petition-no-566-of-2012-cfc-stanbic-bank-ltd-vs-kenya-revenue-authority-section-15-2-g-income-tax-act-issue-in-dispute-diminution-in-value-of-software-the-rates-applicable.