The High Court in Mombasa has ordered the Mombasa County government to stop taxing a mining company based in Kwale.
The mining company, Coast Calcium Limited had filed the case against the county government seeking orders to prohibit the county government from levying its produce.
The court heard that its products particularly limestone was being taxed in the form of cess in Kwale County where it is being mined.
The company through its director, Mr Mohamed Kassam claimed that Mombasa county government was not entitled to levy cess when it has already been taxed in Kwale.
"We have been paying Sh100 per tonne to Kwale County and until recently, the county government of Mombasa did not charge us cess or any other charges. But now the county government wants to levy Sh1,000 fee at Likoni barrier,” he said.
Kassam argued that the charges particularly on those products that are in transit through Mombasa is illegal.
The court further heard that when the company asked the county government what the charges were for, the county government employees manning the barrier failed to give an explanation.
Justice Anyara Emukule in his ruling issued the orders stopping the Mombasa county government from taxing the mining company pending the hearing and determination of the case.
The case will be heard on November 2.