An agribusiness firm associated with a British multinational has obtained temporary orders blocking the Nandi County government from raising invoices for business permits from the company’s administrative units.
High Court judge Joseph Karanja issued temporary orders blocking the devolved unit from demanding payments from Eastern Produce [Kenya] Limited administrative units, instead of a single permit. Eastern Produce Kenya (EPK) has agricultural and horticultural operations in Kenya, Malawi and South Africa and is part of Camellia group.
EPK owns five factories and seven estates and manages two client factories with three large associated estates.
The company said it had paid a single business permit for the year 2024 but contrary to the provisions of the Nandi County Finance Act, 2023, the devolved unit issued a series of invoices for single permits for its administrative units.
“It would thus be prudent that the “status quo” existing between the parties prior to the issuance of the disputed invoices be maintained until after the hearing and determination of the substantive application,” said the judge.
The firm said the Act does not provide for raising invoices for administrative units. EPK argued that the administrative units were not separate legal entities under the Act.
Justice Karanja said the legality or otherwise of the county government’s disputed action can only be established during the hearing of the main application.
The judge suspended the demand, pending the hearing and determination of the main case. Justice Karanja, however, noted that the company was yet to file the main case even after challenging the demand.
He directed the case be filed within 14 days, failure to which the suspension order will lapse.
The court heard that the county government enacted the Nandi County Finance Act 2023, prescribing fees for the issuance of single business permits to persons conducting business within the county.
The scale of fees to be levied was prescribed in the schedules to the Act, which were amended and gazetted in December 2023 for purposes of the 2024 financial year.
Justice Karanja noted that the company’s legitimate exceptions were clearly that the county government would comply with the provisions of the Act and issue appropriate business permits or permits to the firm as a single entity as opposed to several independent entities which has always been the case previously.
