KRA wins case to collect taxes on dumbed export petroleum from Kenol Kobil

Kenya Revenue Authority (KRA) has won a case to collect taxes from Kenol Kobil Limited on export petroleum dumped in the local market.

The High Court sitting in Nakuru, ordered Kenol Kobil Limited to pay KRA Kshs.3,954,673 in respect of export petroleum products that was consumed in Kenya.

The Court in a Ruling delivered on 23rd April, 2020 dismissed an application seeking for conservatory orders stopping KRA from enforcing collection of the tax demand. The tax demand was made after KRA’s investigations revealed that the export petroleum was consumed in the country.

Kenol Kobil Limited had initially made representation that it had consigned the petroleum products to be resold in South Sudan. KRA’s investigation revealed that the trucks ferrying the consignments were released from Kenya Pipeline Depot in Nakuru on 22nd March, 2017 but there was no evidence that they were cleared at the Malaba Border on 23rd March, 2017.

Subsequently a demand was made for the tax as against Kenol Kobil Limited who was the consignee of the consignment.

The High Court in dismissing the Application for conservatory orders held that the Kenol Kobil did not demonstrate whatsoever that any of its fundamental rights was at stake.