Coca Cola wins historic $44 million court case filed by Kenya Revenue Agency
Coca Cola’s local franchises in Kenya have won a Sh5.6 billion ($44 million) court case that was filed against them by the Kenya Revenue Authority.
Kenya’s Supreme Court judges refused to hear the case, noting that re-opening it after an earlier dismissal by an appellate court would be unconscionable, insensitive and cruel.
“We note that the dispute commenced in the High Court in October 2012, ten years ago, then moved to the Court of Appeal, over nine years ago in July 2013… To start the case all over again, for no fault of the respondents, is not only unconscionable but also insensitive and cruel,” the judges said in a joint statement.
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Business Insider Africa understands that the litigation stemmed from a tax dispute dating back to 2012. It all started with speculations that Coca Cola’s franchises (Mount Kenya Bottlers, Rift Valley Bottlers, Nairobi Bottlers and Kisii Bottlers) could be forced to pay taxes on the costs of washing and sanitising recycled bottles.
And then in 2012, the Kenya Revenue Authority actually filed a suit against the Coca Cola bottling companies, demanding that they must pay accrued taxes on their recycled containers, as well as penalties and interests for a period covering between 2006 and 2009.
Interestingly, the suit was dismissed by an appeals court in 2013 for lacking merit, thus overturning an earlier ruling by a high court which had allowed the Kenyan agency to impose the taxes in the first place.
