KRA loses bid to impound Ksh 2.5 billion sugar in tax despute

The Kenya Revenue Authority has lost in its attempt to impound a 2.5 billion shilling sugar consignment at its warehouse at the Mombasa port until the tax dispute involving the sugar is determined. The High Court ruled against the Taxman and in favour of sugar importer, Darasa Investments, handing the firm the green light to store its approximately 40,000 tonnes of sugar at a private storage facility. The authority filed against a court order issued on December 27 last year ordering the sugar to be offloaded at a private warehouse. Justice Erick Ogola dismissed the application saying KRA was not keen on following the court's directive. Darasa Investments said it was ready to pay police to provide security at JB Maina warehouse, arguing that unless the court intervened, it would suffer irreparable financial loss. The firm holds that the port sheds are not appropriate to store the sugar.