Firm sues KRA for seizing rice cargo

A firm has sued the Kenya Revenue Authority (KRA) challenging a decision to impound its imported rice at old Mombasa port.

Federal Investment Company claims it is incurring losses after the detention, seizure and hindrance of its consignment for clearance.

The company, which has also sued the Attorney General, is seeking an order to quash the move to seize its goods.

Through lawyer Leonard Shimaka, the company said it usually imports rice from Zanzibar, which is a free port and a member of the East Africa Customs union under the East Africa Community Protocol.

“After the consignment is offloaded, it is stored at the Kenya Ports Authority warehouse for verification, inspection and clearance by KRA and other relevant authorities stationed at the old port,” argues the company.

It claims that it imported 16,360 bags of long rice and scrap metal estimated at 10 tonnes and lodged entries of the goods with the respondents on diverse dates between October 9 and November 8.

According to the company, on November 6, the respondent through its officers went to the old port with 20 police officers and detained its rice consignment, which had been loaded in two vehicles.

Federal Investment Company said the KRA claimed that the goods were uncustomed.

“The respondents further detained the petitioner’s remaining consignment at the warehouse including 1,640 bags that tax due had already been paid for, processed and released for clearance,” said the company.

The company is seeking a declaration that the respondent’s acts of impounding the consignment of rice is unlawful and in breach of its rights under the Constitution.

In his supporting affidavit, the company’s director Maur Bwanamaka said the respondents carried out a similar operation in 2017.

The case has been fixed for hearing on November 26.