In July 2018, the Kenya Revenue Authority (KRA) contracted Keysian Auctioneers for an assignment. Diplomatic Duty Free Ltd, a company linked to Goldenberg architect Kamlesh Pattni, owed Sh2.2 billion in tax arrears and the auctioneer was to issue a notice of distress to recover the money or attach the company’s property.
But when the auctioneers went to the premises of Diplomatic Duty Free Ltd at the Jomo Kenyatta International Airport (JKIA), there was a new company, Suzan General Trading Ltd (trading as Suzan Duty Free), whose staff denied knowledge of a company by the name Diplomatic Duty Free Ltd and they, therefore, refused to sign the papers. The notice of distress was giving Diplomatic Duty Free Ltd 10 days to pay the arrears or have its property attached.
At the end of the ultimatum, the auctioneers went back and attached movable goods, including a white Tata lorry registration KBT 462F, which according to records held by the National Transport and Safety Authority (NTSA), is registered in the name of Diplomatic Duty Free Ltd, the company that owed KRA Sh2.2 billion. But Suzan General Trading Ltd, which claimed it was unaware of Diplomatic Duty Free Ltd, claimed ownership of the lorry.
Two court cases and an appeal before the Tax Appeals Tribunal later, the taxman is now staring at losing the Sh2.2 billion. KRA on March 19, 2021 registered before the Tax Appeals Tribunal a consent with Suzan General Trading Ltd withdrawing the notice of distress issued in 2018 and agreeing to release all the goods the auctioneer had attached and Suzan agreeing to withdraw its appeal.