Taxman sued for detaining firm's rice consignment

A man walks past Awanad Container Freight station Mikindani, Mombasa where the seized consignment is held. FILE PHOTO | WACHIRA MWANGI |

What you need to know:

  • The company wants the court to compel the KRA to release containers containing the rice currently held at Awanad Container Freight Station and other bags of rice seized at Benvick Warehousing Ltd.

A company has sued the Kenya Revenue Authority (KRA) claiming the agency is detaining consignments of rice it imported though it has already paid taxes on it.

Jamil Trading Ltd says its has not committed any offence and has paid all taxes as demanded by the KRA.

“The plaintiff has no tax liability in respect to the consignments and there is no reason for their continual detention,” read part of the company's application.

Through Wameyo Onyango & Associates Advocates, the company argues that it continues to suffer losses due to the KRA’s unjustified conduct.

The company wants the court to compel the KRA to release containers containing the rice currently held at Awanad Container Freight Station and other bags of rice seized at Benvick Warehousing Ltd.

A director at the company, Mr Mohamud Ibrahim said they have been informed by their bank that KRA has been making inquiries on their account.

He stated that the action by KRA amounts to intimidation and harassment.

“It is only fair and in the interest of justice that the orders sought are granted to ensure that am granted an opportunity to redeem my property from auction,” said Mr Ibrahim.

According to the suit papers, the provisions of the East African Customs Management Act show that KRA breached statutory procedure.

The company further claims that an officer at KRA has been threatening to arrest one of its directors.

Jamil Trading Ltd is also seeking a permanent injunction restraining KRA from intimidating, harassing and threatening one of its directors with arrest.

Justice Patrick Otieno directed parties to file responses within three days and the case be mention on September 13.

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