This semester, we kick off a brand new course for final year undergraduate law students on e-commerce and the law. This course aims at explaining the legal challenges that are posed by electronic commerce. We shall also contextualise and problematise on-going legal/policy developments in Kenya to regulate electronic commerce. In this blogpost, we explore the implications of taxation. Take for instance the case of Karura, our fictional Kenyan answer to Amazon, an established e-commerce business, with dozens of online platforms. It offers a variety of goods and services to its customers worldwide. Delivery of goods and services takes place on the Internet and payments for purchases are made electronically. Karura is incorporated in Mauritius and has a presence throughout East Africa. Their management board sits in South Africa and decisions are often taken in the United Kingdom. If Kenya wishes to assert the authority to tax Karura in Kenya, is there a basis for exercising such taxing jurisdiction?