KRA fights bid to stop tax system

Kenya Revenue Authority headquarters Times Towers in Nairobi. KRA hopes to increase revenue collection after installing a new customs software by end of 2016. PHOTO | SALATON NJAU | NATION MEDIA GROUP

What you need to know:

  • The Swiss company had last year filed a case at the High Court challenging the process of awarding the contract to Bull Sas Limited.

The Kenya Revenue Authority (KRA) has opposed an appeal by a company seeking to stop it from rolling out a Sh1.2 billion customs system.

The authority argued that they have already started developing the Integrated Customs Management System (ICMS) meant to modernise customs processes and any order to stop it will not serve any purpose.

“The contract which they seek to stop has already been implemented, there application is therefore overtaken by events. It is in public interest that the project proceeds to its conclusion irrespective of the company’s interest,” said KRA’s project manager Susan Wanjohi.

APPEAL IS DETERMINED

She was responding to an application at the Court of Appeal by Switzerland-based Webb Fontaine Group seeking to stop implementation of the project until their appeal against a High Court decision last month allowing the project to proceed is determined.

The Swiss company had last year filed a case at the High Court challenging the process of awarding the contract to Bull Sas Limited, but Justice George Odunga dismissed their claims of irregularities.

The company argued that the judge made a mistake in law by dismissing its case, and wants temporary orders stopping implementation until the appeal is determined.

The project is financed by Trademark East Africa (TMEA) and aims to provide customs with a more versatile capability to address tax collection challenges. It will replace the Simba System, which cannot be interfaced with those of other revenue bodies in East Africa.