KRA detains India iron ore exports at the Port of Mombasa


The taxman is locked in a bitter dispute with an iron-ore trading company whose export cargo has been detained at Mombasa Port.

Samruddha Resources Kenya Ltd (SRKL) says it stands to suffer losses in excess of Sh150 million ($1.5 million dollars) if it is not allowed to load the minerals to a vessel for export.

The company in court papers says the Kenya Revenue Authority has withdrawn its approval for loading of 55,000 metric tonnes of iron ore on MV Densa Cougar for export to India.

SRKL has sued KRA, the Director of Criminal Investigations and the Attorney General.

It argues that demurrage in respect of the vessel continues to accrue at a daily rate of Sh150,000 having arrived in Mombasa on October 23.

It claims that the State agencies are conducting themselves in disregard of its proprietary and fair administration action. “Potentially, their conduct is likely to result in the petitioner being unable to fulfil its contractual delivery obligations and result in termination of sales of the iron ore to international purchasers,” argues SRKL in its application.

SRKL is seeking a conservatory order prohibiting the respondents from interfering with its proprietary rights or its access to their iron ore consignments currently stored at Africa Ports & Terminals Ltd yard in Mombasa.

The company also wants a conservatory order to compel KRA to release the export entry number and permit of loading the vessel. It is seeking the orders pending hearing and determination of its application inter-parties.

According to SRKL, the respondents acting under the guise of a multi-agency which it (SRKL) argues is not an entity anchored in law are conducting themselves illegally.


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