In Summary
  • Darasa Investments Ltd wants the court to quash the decision by KRA to levy the Sh2.5 billion tax on its sugar consignment.

A sugar importer at the centre of a Sh2.5 billion tax dispute has termed a decision by the Kenya Revenue Authority (KRA) to levy duty on his consignment unreasonable.

Through lawyer Fred Ngatia and Dennis Mosota, Darasa Investments Ltd said the action by KRA was a case of a public authority going any length to deny it a benefit conferred alongside others.

“Whereas an individual may have liberty to do what he wants, a public authority should never have an axe to grind with a citizen,” Mr Ngatia said.

Mr Ngatia told the court that it is not disputed that the 40,000 metric tonnes of sugar was loaded at the Port of Brazil, within the stipulated period and purchased by Darasa Investments Ltd.

ILLEGAL

He further told Justice Eric Ogola that the vessel carrying the sugar could not dock at the Port of Mombasa due to its size.

“This is routine; the vessel went to Dubai and the cargo was loaded into a smaller vessel,” Mr Ngatia said.

The court was further told that the decision to import the sugar duty-free still stands and the Treasury Cabinet Secretary Henry Rotich is fully aware.

Mr Ngatia further argued that during the period set out by the CS, the sugar was within the country’s territorial waters.

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