Mombasa Governor Ali Hassan Joho has gotten a reprieve after the High Court barred the Kenya Revenue Authority (KRA) from demanding Sh90 Million from a firm linked to him.
High Court Judge Eric Ogola barred the KRA from issuing any notices to seek Sh90 Million from Portside Freight Terminal Limited that had allegedly accrued in taxes from the year 2008 to 2011.
KRA, through a sworn affidavit by Jesse Kamau, told the court that Portside Freight Terminal, which is allegedly owned by Joho's family, had not paid taxes.
Kamau told the court that KRA was right and within the law to summon the directors of the company for failing to remit the self-assessed taxes.
The freight company, through its management, however, refuted claims that it owed the tax-man Sh90 Million in taxes and sought the court to prohibit KRA from issuing the notices for the years 2008 to 2011 or any years thereafter.
Portland’s lawyer Paul Buti argued that the company was not evading taxes and should be granted time to clear the payments.
Buti also sought to have KRA prohibited from issuing the notices to either its directors, shareholders bankers or any of its directors.
KRA had last year shut down two companies allegedly owned by Governor Joho — Autoports Freight Terminals Limited and Portside Freight Terminals Limited — over tax evasion.
It alleged that the two companies were handling smuggled sugar, rice and ethanol, hence, their licences were suspended.
Joho in response termed the allegations as a baseless witch-hunt by the government aimed at intimidating him.
KRA has been barred until the determination of the case or further orders.
