The dispute arose from tax assessments issued by the Kenya Revenue Authority amounting to approximately KES 1.9 billion against a foreign engineering consultancy firm engaged in infrastructure and development projects, some of which were donor-funded and executed outside Kenya. The Commissioner’s position was that, notwithstanding the location of project execution, the income remained taxable in Kenya on the basis that the management and control of the Appellant’s business was exercised within the jurisdiction. The Appellant disputed this position, arguing that the income was sourced outside Kenya and that certain donor-funded projects were exempt from taxation.