Fargo Courier says City Hall officials have issued it with a demand notice for allegedly failing to pay branding fees as required by the Physical Planning Act and Local Government Act.
The firm argues that the Local Government Act is repealed while Physical Planning Act does not regulate branding of vehicles, therefore making the demand defective and unlawful.
The firm says imposing a levy on all corporate branded vehicles within the city and those transporting goods and services from other counties to Nairobi would negatively impact and affect mobility of goods and services.
Fargo Courier Ltd, which is affiliated to American multinational Wells Fargo, is in court fighting Nairobi City County over a demand to pay vehicle branding fees.
The firm says City Hall officials have issued it with a demand notice for allegedly failing to pay branding fees as required by the Physical Planning Act and Local Government Act.
Fargo argues that the Local Government Act is repealed while Physical Planning Act does not regulate branding of vehicles, therefore making the demand defective and unlawful.
“Pending hearing and determination of this application, a conservatory order to issue restraining the respondent by itself, agents, servants or employees from demanding from the petitioners any charges relating to the branding of the petitioner’s motor vehicles and trucks and from impounding the said petitioner’s motor vehicles and trucks,” reads the order sought by Fargo Courier.
The firm says imposing a levy on all corporate branded vehicles within the city and those transporting goods and services from other counties to Nairobi would negatively impact and affect mobility of goods and services.
The firm says it provides valuable and sensitive services to the public which include transportation of urgent cargo for financial institutions, noting that seizing of its vehicles will cause it great prejudice.
Officers from the county’s compliance department on September 24 allegedly threatened a Fargo employee with arrest unless the branding fees are made within one week.
The documents produced in court show that the county served Fargo Courier with a demand to pay Sh54,400, being the branding fees for its two vehicles.
The firm further says as the county is seeking to treat its parked trailers from where courier services are operated as buildings, the physical planning rules of 1998 exempts them from paying branding fees.
The rule allows the owner of a building to display the name of the shop provided it is not greater than 0.3 metres and contains less than six words without prior consent of the local authority.
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