Gideon Moi’s Company Among 3 That will Get Millions Following Govt Fertilizer Blunder

Kenya African National Union (KANU) party leader Gideon Moi’s company is among the beneficiaries who will be receiving millions after the government made a blunder with its fertilizer subsidy program.

Moi’s company was enjoined in a legal battle alleging the Director of Criminal Investigations (DCI) and the Kenya Bureau of Statistics (KEBS) unlawfully delayed the clearance of their cargo.

The case against the government was presented by a prominent manufacturer and distributor of agrochemicals, industrial chemicals, and public health products, alleging that the agencies obstructed the clearance of their fertilizer, resulting in significant financial losses. 

The court ruled in favour of the companies, setting up Moi’s company and three others to indirectly benefit with a payout for outstanding warehouse rent and taxes.

Ruling in the case that has been dragging for eight years, High Court Judge Lawrence Mugambi found that the DCI, who was the 2nd respondent, and KEBS, the 3rd respondent, violated the company’s constitutional rights under Articles 47(1) and 40(3) of the Constitution.

In its ruling, the court found that the decisions and actions of the DCI and KEBS in refusing to authorize the timely clearance and release of the petitioner’s products were unlawful and in breach of the constitution.

The judge also found that it was unlawful to detain an importer’s goods for more than 21 days from the date of storage in a bonded warehouse. The respondents were also accused of not meeting the constitutional threshold of being expeditious, efficient, lawful, reasonable, and procedurally fair.

Consequently, the company will be directly receiving compensation, while Moi’s company and three others will be indirect beneficiaries.

The prominent manufacturer and distributor of agrochemicals will be directly benefiting and getting over Ksh19 million in compensation following the loss incurred.

Moi’s company, the Kenya Ports Authority, will be benefiting indirectly as the respondents are to pay outstanding warehouse rent and taxes to them.

KEBS and the DCI will be required to pay outstanding taxes to the Kenya Revenue Authority, listing them as the third beneficiaries.

DCI and KEBS will be responsible for paying all outstanding warehouse rent and taxes directly to Moi’s company and KRA. The amount would depend on how much the petitioner owes for storage and other charges that were incurred due to the unlawful detention of their goods.

Judge Mugambi also ordered the fertilizers to be disposed of at the cost of DCI and KEBS.