This archive report was first published on 23 April 2020.
On April 23, 2020, Kenya Revenue Authority (KRA) faced a potential payout of over Sh40.3 million to a private firm, Kensington International, for loss of income and aggravated damages.
The dispute arose from the wrongful seizure and detention of Kensington's trucks by KRA, which resulted in the loss of a contract to transport goods to Tanzania and Uganda.
Kensington had secured the contract with Trans East Ltd and had imported trucks, trailers, generators, and loaders in preparation for the job.
According to Kensington's managing director, Collins Stephen Ford, the company had executed a contract with a Tanzanian firm to transport machinery to the country and Uganda, with expected earnings of $500,000 (Sh53.5 million).
However, the seizure of the trucks by KRA resulted in the loss of this projected income, Ford 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 due to the impounding of the lorries.
At the time of the seizure, the vessels with the cargo had docked at Mombasa port, while others were in the high seas.
Kensington, along with Shelly Beach Hotel Ltd, which imported the trucks on its behalf, has sued KRA seeking damages for wrongful seizure and detention of its property, despite having paid customs duties.
However, KRA claims that it seized and detained the goods after the firm failed to produce evidence of duty payment.
Investigations revealed that the two vehicles had their customs duties paid, and a release of the same was recommended, provided warehouse rent was paid to the customs warehouse, according to KRA investigator Abdilatif Ali.
