Cigarette maker Mastermind Tobacco, which is owned by business tycoon Wilfred Murungi, has signed a deal with the taxman that will see it put its prime assets on forced sale to settle Sh2.9 billion tax arrears.
The Kenya Revenue Authority (KRA) and Mastermind Tobacco have filed a consent in court revealing the cigarette maker’s offer to dispose of 12 properties in a bid to raise Sh1.54 billion for partial payment of its multi-billion-shilling tax claim.
The balance will be settled in staggered installments, the consent filing signed by both parties shows.
Mastermind is understood to be in negotiations for a possible buyout by global cigarette giant Philip Morris International, but neither of the firms have so far publicly confirmed the deal.
Mr Murungi did not pick up or return our mobile phone calls Wednesday.
The taxman has agreed to withdraw a warrant of distress it had issued against Mastermind in September, instructing auctioneers to attach the company’s assets with a view to recovering the colossal sum.
The consent was yesterday adopted as the record of the court.
“The consent dated and signed by the counsel for the applicant and respondent on December 20, 2018 and filed in court on January 23, 2019 is hereby adopted as order of the court and the file is according marked as closed,” ruled Justice Pauline Nyamweya