Nairobi — The High Court has suspended an order requiring transporters to install an electronic cargo tracking system on their vehicles.

The Kenya Revenue Authority suffered a blow on Thursday after Justice Jackton Ojwang', sitting in Mombasa, cancelled implementation of the new rules that required all lorries, trucks and tankers to be fitted with the electronic gadgets.

This was after he granted orders to the Kenya Transport Association (KTA), who had moved to court under a certificate of urgency.

The judge also nullified the appointment of three companies - Navisat Telematics, Societe Generale De Surveillance (SGS) and Cotecna Inspection Limited - which had been contracted to install the gadget, which the taxman argued would assist in revenue collection and control of cargo.

KTA said the decision - contained in a letter dated June 18, 2010 - was discriminatory as it selectively applied to lorries, trailers and trucks and yet there are several competitors with foreign-registered vehicles from within East and Central Africa operating and performing the same duties within the same locality and designation.

Mr Paul Maiyo, the association's secretary, said the decision was also punitive since members would be forced to levy more charges to customers, hence become non-competitive since foreign vehicles would have an upper hand in giving favourable transport rates.