Rift Valley Railways files suit, wants Sh1b in refunds from State

Kenya: The Rift Valley Railways (Kenya) Ltd now wants the Government to refund over Sh1 billion that has been paid as Road Maintenance Levy.

The company asserts that the Road Maintenance Levy Fund Act should not apply to them as they use tracks and not roads.

"Imposition of the roads levy violates cardinal principles of equity, equality and fairness," lawyer Njoroge Regeru said in the suit filed on Tuesday.

They now want the Government to refund a total of Sh 1,349,357,042 within 14 days after the court issues its judgement, with interest as will be directed.

Regeru stated that through a concession awarded by the Kenya and Uganda governments in 2005, the Rift Valley Railways in Kenya and their counterpart the Rift Valley Railways took over operations and some of the assets of the Kenya Railways and the Uganda Railways corporations respectively.

He further explained that under the terms ensuing, the concession agreement entered into in January 23, 2005, which is still in force, is to ensure there is uninterrupted railway service between Kenya and Uganda.

Maintenance Levy

The lawyer pointed out that the Road Maintenance Levy Fund Act which came into force in 1993, provides for the imposition of levies on petroleum fuels including diesel and is payable by motorists as part of their fuel costs.

He said the railway corporation tried to engage the Cabinet Secretaries in charge of finance and transport, but they have failed to come up with remedial action. The two and their ministries have been listed as respondents.