Transporter seeks Sh40m from KRA in contract loss row

Kenya Revenue Authority (KRA) risks paying a private firm more than Sh40.3 million for loss of income and aggravated damages after wrongful seizure and detention of its trucks.

Kensington International says as a result of the action by the KRA, it lost contract of transporting goods including machinery to Tanzania and Uganda it had secured with Trans East Ltd.

The company had imported trucks, trailers, generators and loaders in preparation for the contract it had secured.

Kensington managing director Collins Stephen Ford said at the time trucks were seized, he had executed a contract with a Tanzanian firm to transport machinery to the country and Uganda and expected to earn $500,000 (Sh53.5 million).

"That projected income was lost on account of the seizure of the trucks by KRA," he said.

The contract to transport cargo to Kampala was open-ended while the one to Tanzania was for a year and renewable. However, the contract was not honoured because the lorries had been impounded.

At the time of the seizure, the vessels with the cargo had docked at Mombasa port while others were in the high seas.

The company together with Shelly Beach Hotel Ltd, that imported the trucks on its behalf have sued KRA seeking for damages for wrongful seizure and detention of its property despite having played custom duties.

However, the KRA says it seized and detained the goods after the firm failed to produce evidence it had paid duties.

“Further investigations carried out revealed that the two vehicles had their customs duly paid and a release of the same was recommended provided warehouse rent was paid to the customs warehouse,” KRA investigator Abdilatif Ali said in court documents.