Transfer Pricing in Kenya

Abstract

Head office, parent company, divisions, branches or subsidiaries of a firm trading amongst themselves will invariably set the prices at which goods and services will be exchanged. The prices need not be the same as the prevailing market prices since they are all members of the same group. Again, transactions of that nature could exclusively be for such groups. For instance, a patent could be meant only for companies within the group so no open market price would exist.