A Kenyan court has intervened to prevent the disposal of assets belonging to a company associated with businessman Kamlesh Pattni, amid a Sh2.2 billion tax dispute with the Kenya Revenue Authority (KRA). The order, issued by Justice Weldon Korir, bars KRA and auctioneers Keysian Auctioneers from liquidating Suzan Duty Free's inventory at Jomo Kenyatta International Airport (JKIA). The assets, valued at Sh2,207,884,743, include alcoholic beverages, a truck, and office equipment seized over alleged unpaid taxes.
The dispute involves Suzan Duty Free, linked to Diplomatic Duty Free Ltd, which is connected to Pattni. The company challenged the seizure, asserting it had settled all tax obligations and received a clearance certificate. Lawyer James Nyiha argued KRA improperly targeted Suzan Duty Free instead of Diplomatic Duty Free Ltd, claiming the action violated the company's right to operate. KRA countered that Suzan Duty Free assumed management of Diplomatic Duty Free's operations at JKIA, making it liable for outstanding debts.
The case resurfaced after Pattni's 2013 acquittal in the Goldenberg scandal. KRA's lawyer, Marion Gitau, accused the company of forum shopping, noting similar issues had been dismissed in September 2018 by Justice Pauline Nyamweya. She maintained KRA followed proper procedures, citing a distress order sent in July 2018. The court will deliver a ruling on October 31 regarding jurisdictional disputes.
