Section 3(i) of the ITA is unequivocal that for income to be taxed in Kenya it must have been derived in Kenya, the Tribunal observed that there was no evidence pointing to the Appellant having income generating activities in Kenya. The Respondent’s supposition that the Appellant derived income in Kenya through its Affiliate hence it is taxable in Kenya was an overreach by the Respondent given that the Appellant and its affiliate are distinct legal entities liable to be taxed separately.