The court has blocked a firm associated with businessman Kamlesh Pattni seeking to dispose its assets, in line with an ongoing tax tussle between him and Kenya Revenue Authority
It has emerged that the company, Suzan Duty-Free, owes KRA Sh2.2 billion in unpaid taxes.
Justice Weldon Korir has also stopped KRA from auctioning the company's assets, to recover debts owed to it by another firm linked to Pattni, Diplomatic Duty-Free Limited.
KRA last week sent Keysian Auctioneers, which raided the company's warehouse at JKIA and loaded several assets, including alcoholic beverages, into a truck, for auction.
The judge has now stopped both sides from interfering with the assets until the case is heard. KRA is demanding Sh2,207,884, 232 in unpaid principal tax and the accrued interest.
“A question has been raised over this court’s jurisdiction to hear and determine the dispute and before that issue is decided, it is just and fair to restrain both parties from disposing the subject assets pending the ruling on jurisdiction,” he ruled.
However, Diplomatic Duty-Free through its lawyer James Nyiha has denied owing KRA any debt, saying that its assets cannot be taken over a loan owed by the other firm.
"The company informed them that it was not Diplomatic Duty-Free Ltd and that attaching its properties was illegal but they refused to accede to that fact. It is against the right of the company to do business and own property,” he said.
However, KRA lawyer Marion Gitau rubbished the claims, saying that Diplomatic Duty-Free becomes the new culprit after taking over the running Suzan Duty-Free.
The ruling will be given on October 31.