Firm resumes iron ore mining after KRA spat

Companies

Tuesday, January 8, 2019 21:10

By LUCY MKANYIKA

An iron-ore trading company at the centre of a crippling two-month tax row with the Kenya Revenue Authority (KRA) has resumed operations after extraction of the mineral at Kishushe, Taita Taveta County recommenced this week.

The firm, Samruddha Resources Kenya Limited (SKRC), was embroiled in a bitter tax evasion dispute with the taxman forcing the company to suspend its activities.

It had also been accused of lacking an export licence with its 55,000 metric tonnes of iron ore cargo detained at Mombasa Port.

The mineral was destined for India aboard MV Densa Cougar when KRA withdrew approval for its export.

An official at the firm, Benedict Mwabili, said mining resumed Monday after the government cleared the company to continue operations.

“They frustrated us by detaining over 55,000 metric tonnes of the mineral at the Mombasa Port and tainting our company’s name. We are happy that those allegations were found to be false,” he said.

The High Court had ordered KRA to allow the firm to export its consignment after the company sued the taxman, the Attorney-General and the Director of Criminal Investigation for blocking its business.

“We have suffered huge losses following the suspension of operations. We are yet to quantify, but it’s a huge loss,” he said.

He said full operations would resume soon as they were currently assembling machines at quarry sites.

More than 800 casual workers who were rendered jobless the last two months will also resume work this week.

Kishushe residents said traders who operate bars, hotels and other small businesses were left with few or no customers when the company suspended operations.