Kenya Revenue Authority (KRA), Attorney General Paul Kihara Kariuki and Treasury Cabinet Secretary have been sued by beverage and cosmetic firms following the introduction of a new tax system to be effected starting September.
KRA aims to raise Sh3.6 billion from beverage and cosmetic firms prompting PZ Cussons EA Ltd, Delmonte, Jetlak Foods Limited, Water Co ltd, Blue Plastics, Kevian Kenya, Kenafric Industries, Aviano Ltd, Kenya Tea Packers Ltd (Ketepa), Buyline industries, Beiersdiorf Eastafrica and L’oreal to jointly sue the above parties.
The entities manufacture cosmetics, bottled water, soda, non-alcoholic beverages and juices.
Through lawyer Kelvin Mogeni, the members to the Association of Manufacturers, importers, distributors and retailers state that Excisable Goods Management System (EGMS) tax system was implemented without the involvement of all stakeholders.
“All these issues were raised after regulations were unlawfully published and the sued parties had set in motion the implementation process of the EGMS, the concerns raised ought to have been addressed earlier, prompting these proceedings,” said Mogeni
The case follows the suspension of Henry Rotich over alleged misuse of funds in dams project. President Uhuru Kenyatta has since appointed Labour CS Ukur Yattani as the acting Treasury Cabinet Secretary.
Rotich and former Treasury PS Kamau Thugge among others stand are accused of abuse of office, misappropriation of funds among other charges over their involvement in the Sh63 billion Arror and Kimwarer dams scandal.
“They broke the law on public finance management under the guise of carrying out legitimate commercial transactions, colossal amounts were unjustifiably and illegally paid out through a well-choreographed scheme by government officers in collusion with private individuals and institutions,” Haji told a news conference when announcing the dams saga as quoted by Reuters.