It’s Operation ‘Kaa Sober’ in Kiambu County as court declines Platinum Distillers’ plea

A Ruiru-based alcoholic drinks manufacturer has moved to court seeking to have its premises reopened. The authorities closed down the Platinum Distillers Limited factory during a sting operation under Inspector-General of Police Joseph Boinnet and Director of Criminal Investigations Geoffrey Kinoti last month.

The closure was due to an alleged plot to evade payment of up to Sh14 million in taxes. The High Court has declined to order the Kenya Revenue Authority (KRA) to re-open a Ruiru-based alcohol manufacturing company it closed down on February 23 over tax evasion. Justice Weldon Korir Thursday said the application by Platinum Distillers Limited lacks merit.

Justice Korir upheld the objection by KRA and gave the taxman time to finalise investigations. Two directors of Platinum have since been charged for failing to pay tax to the tune of Sh41 million. Through lawyer Chris Kabugu, Platinum said its directors and workers had been denied access to their premises after the Kenya Revenue Authority (KRA) officers placed customs seals on the outer doors, putting the factory under 24-hour watch. Mr Kabugu told Justice Weldon Korir that the closure has harmful consequences on his client’s business. Platinum said the KRA officials raided the premises on February 23 without any lawful cause, seized documents, locked the factory and placed custom seals at the premises, “thereby denying employees entry”.

Justice Korir said the premises were closed over allegations of importing hazardous ethanol. The judge said KRA requires 30 days to complete investigations. The judge directed that the case filed by Platinum against KRA be heard on March 23, 2019.

Lawyer Christopher Kabugu for Platinum had asked the court to direct to direct KRA to re-open the premises saying its decision to close down the factory was a violation of the rights to trade. But KRA lawyers Nelly Ngovi and George Ochieng objected to the re-opening plea saying the company was dealing with an illegal commodity and evading tax.