13 April 2018

Kenya: KRA Wins Court Case As Sugar Deal Turns Sour

Nairobi — KENYA Revenue Authority (KRA) has won a Sh2,5 billion (US$24,7 million) court case against sugar importer, Darasa Investments Limited.

This paves way for the agency to execute its mandate of collecting the accrued import duty on the 40 000 metric tonnes of sugar imported by Darasa last year.

The Court of Appeal has ruled the product's importation from Dubai in the United Arab Emirates contravened gazette regulations. It emerged the sugar could not therefore have been shipped from in Brazil Santos Brazil hence was not exempt to tax.

The judgement, delivered by Judges of Appeal Alnashir Visram, Wanjiru Karanja and Martha Koome at Mombasa Court of Appeal, set aside the High Court judgment, delivered on February 22, allowing the sugar into the country duty free.

Darasa had earlier moved to the High Court seeking Judicial Review orders barring KRA from demanding taxes over the consignment allegedly imported during the duty-free window.

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