Kenya enacted a new law targeting units of foreign companies that escape remitting most of their domestic taxes by allocating income to tax havens while attributing expenses to the East African nation, a practice known as transfer pricing.

The Tax Procedures Act gives the Kenya Revenue Authority powers to investigate pricing arrangements between local units of multinationals with their parent companies and overturn any that it deems to have been structured with the intention of avoiding tax...

The KRA said it is also working with authorities in Uganda, Rwanda and Tanzania to curb illicit trade in taxable goods as part of efforts to cut revenue leakages and tax evasion within the region...