KRA closes down Joho family freight businesses despite court order

Police officers outside Autoports Freight Terminals Limited after OCPD Zacchaeus Ng'eno ordered its closure on February 2, 2016. PHOTO | LABAN WALLOGA | NATION MEDIA GROUP

What you need to know:

  • The KRA’s decision to suspend the companies' licence was in bad faith and meant to achieve ulterior motives, .
  • The Kenya Ports Authority has been named as interested parties in the two separate suits by the freight stations.

Police on Tuesday closed down two container freight stations owned by Mombasa Governor Hassan Joho’s family despite a court order stopping the Kenya Revenue Authority from interfering with the businesses.

Port OCPD Zacchaeus Ng’eno said officers had been instructed to close down the two businesses despite a court order. He did not mention who ordered the closure.

On Monday, the High Court stopped the KRA from closing down Autoports Freight Terminals Limited and Portside Freight Terminals Limited or stop the companies from conducting their operations pending the hearing and determination of the cases.

“The company (Portside Freight Terminals Limited) is allowed to challenge KRA’s decision to suspend its licence. In the meantime, a stay is granted suspending the respondent’s decision to stop the company’s operations until the suit is heard and determined,” ruled Justice PJ Otieno.

The companies, through lawyers Paul Buti and Dennis Mosota, had argued that the KRA’s decision to suspend the companies' licence was in bad faith and meant to achieve ulterior motives.

According to Mr Mosota, the KRA and the Kenya Ports Authority did not give them any reasons for closing down the station, and wondered why they carried the operation at night.

“It was unfair for KRA to strike at night and place padlocks on the entrance to the facility without any fair administrative process. They condemned the company unheard, which is a violation to rules of natural justice,” said Mosota.

Mr Mosota asked the KRA not to give in to any pressure from external forces in handling the matter, saying that the company wants to be treated fairly through an independent body to adjudicate the dispute.

The Kenya Ports Authority has been named as interested parties in the two separate suits by the freight stations.