AG wants enjoined in seized 82 tea containers lawsuit

Attorney-General Kihara Kariuki wants to be enjoined in a case in which a tea buying and exporting company has sued the Kenya Revenue Authority (KRA) seeking to have a decision to detain its 82 containers of tea quashed.

The AG says the court may be misled into releasing the tea that is under investigation, not fit for human consumption or was imported illegally.

Through deputy chief state counsel Nguyo Wachira, the AG said there is a danger of the tea being moved and that it may never be recovered or might be consumed by the public if released to Cup of Joe Ltd — the importer.

Mr Wachira argues that even if the AG has not been appointed to a case involving the government or State agency, he may with the permission of the court appear at any stage of proceedings to defend the public interest.

He said the application by Cup of Joe Ltd raises substantial issues of public interest as it affects the rights or profits of the government and compliance with laws and regulations in importation and exportation of tea.

The AG argues that Cup of Joe Ltd is guilty of material non-disclosure of facts relating to the tea being detained, including an ongoing investigation into the issues mentioned in the application.

“The investigations touch on the criminal conduct involving Cup of Joe Ltd, its directors and others currently not before the court who are likely to face criminal charges in respect of the tea,” the AG says.

According to the AG, allegations by Cup of Joe Ltd are baseless and meant to hoodwink the court into issuing favourable orders to it without having the benefit of all facts.

The AG said the Act sought to cure unfair tea trade practices by issuing policy and legislating how tea imports shall be conducted for public benefits.

Cup of Joe Limited also wants an order issued to the KRA Commissioner General directing him to immediately release the tea being stored at Regional Logistics Centre in Changamwe, Mombasa, which is a designated customs area.

The company said it imported 82 containers of tea from Iran and Vietnam for purposes of blending and re-exportation to overseas markets.

It said on October 5 last year, Chai Trading Co Ltd applied to the KRA to be allowed to move the tea into their bonded warehouse for purposes of blending, packaging and re-export.

According to Cup of Joe Ltd, on October 12, the taxman gave its authority to have the tea released for blending and packaging into Chai warehousing and bonded warehouses.

The case has been fixed for hearing on January 6.