Court bars collection of cess from Kakuzi

The Murang’a County government has suffered a blow after it was restrained from demanding and collecting cess from Kakuzi Limited.

High Court judge Kanyi Kimondo ruled that the county government should stop demanding cess for 2013 up to 2017 that accumulated to ShSh81,440,430 until the suit is heard and determined.

The agricultural company moved to court after the county government demanded cess payment for the years.

It had sought conservatory orders over fears of its employees being harassed by agents of the government, as it argued that the County Finance Act 2013 had not been published in the Kenya Gazette to conform with the law.

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Kakuzi argued that the amount sought was exorbitant, adding that the Crops Act provides that only the national government is mandated to impose taxes for the scheduled crop.

In the same court, a former chairman at Mugumo-ini Farmers Cooperative Society in Gatanga, Francis Ngone, was barred from selling, transferring or sub-dividing property belonging to the society.

Justice Kimondo declared a transaction entered by Ngone after April 14, 2016 null and void, as he had been ousted from the leadership of the organisation.

“The court is satisfied that the company held its annual general meeting on April 14, 2016, where Ngone was voted out,” said the judge.

He issued a permanent injunction, stopping him from interfering with the management.

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The court heard that Ngone was replaced by Joseph Kamande in the Society.

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Murang’a CountyKakuzi LimitedCess