Total Kenya, KRA spoil for a fight

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By | Feb 29, 2012

By Kenneth Kwama

Total Kenya Ltd will next week face-off with the Kenya Revenue Authority (KRA) over a long-standing dispute that led to its suspension by the revenue collector.

The suspension was linked to a dispute in 1995 over the importation of liquid petroleum gas (LPG) equipment that went to court in 2001 after Total applied for a judicial review.

The matter was dismissed early this month, but Total says it was not notified of the ‘show cause’ action that was coming up in court. This led to the dismissal of the case without Total’s participation.

According to a statement from Total sent to newsrooms yesterday, KRA proceeded to suspend the oil marketer from trading with its customs officials until it settles the outstanding amount– Sh131 million.

Total says the decision has crippled all its operations in Kenya and Uganda.

According to the dispatch, Total engaged KRA about the issue and the decision was reinforced by a court action staying any action by the authority.

The principal suit was reinstated and the parties shall be back in court on March 2.

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