Joho companies seek to end dispute with KRA

What you need to know:

  • The firm's lawyer told court that there has been concrete measures taken to resolve dispute with KRA.
  • KRA said it had made progress with the two freight stations and required 28 days to “iron out” few issues.

  • The High Court put on hold a decision by the authority suspending the two freight stations permits.

The management of two container freight stations now want Kenya Revenue Authority to present proposals on how a dispute between them and the agency would be settled.

Mr Dennis Mosota, the lawyer for Portside Freight Terminals and Autoports Terminals, told the court on Wednesday that he was not aware of any progress made by the authority to settle the dispute out of court.

Through Mr Pius Nyaga, KRA said it had made progress with the two freight stations and required 28 days to “iron out” few issues.

The two companies are associated with the family of Mombasa Governor Hassan Ali Joho.

Mr Mosota told the court that should the taxman be granted the last adjournment, it should be on condition that within seven days, it furnishes the proposals to the two firms for consideration “to have something to work on”.

In February, the authority sought orders stopping it from suspending the licence of Autoports to operate as a customs bonded cargo-handling facility discharged.

According to the taxman, the application was based on the grounds that the effect of the stay of execution was to allow the company carry on operations notwithstanding the contents of the January 28 commissioner of customs and border control letter.

He argued that Autoports did not disclose to the court the letter suspending its operations as a customs bonded cargo-handling facility to pave way for investigations into violations of the East African Community Customs Management law.

“The applicant wilfully neglected to disclose to this court that the commissioner was mandated to regulate customs areas with a view to securing goods under customs control,” the application read in part.

The High Court put on hold a decision by the authority suspending the two freight stations permits.

Portside and Autoports went to court seeking to be allowed to apply for an order prohibiting the revenue authority from sealing them off.

The case will be mentioned on June 7.