Kingsway loses court fight with KRA

A Kingsway Tyres outlet along University Way in Nairobi on August 17. PHOTO | SALATON NJAU

The High Court has declined to compel the taxman to furnish Kingsway Tyres with several documents taken in a 2002 raid on its offices and later used to claim Sh2.4 billion in unpaid taxes from the tyre dealer.

Justice George Odunga ruled that Kingsway failed to show whether Kenya Revenue Authority (KRA) has any legal duty to furnish it with the documents taken during the raid, adding that ordering the taxman to do so would be over-stepping the court’s mandate.

Kingsway filed the suit last year claiming that the documents had been taken in a bid to extort money from it in return for dropping the Sh2.4 billion tax claim which the firm also claims is false.

“Such orders can only be issued to compel the performance of a public duty which is imposed on a person by law.

‘‘In this case without Kingsway showing the public duty imposed on KRA to produce the documents may well amount to compel them to act in excess of jurisdiction,” he ruled.

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