Reprieve for Real Image Logistics as court restrains KRA from auctioning goods in 18 containers

The Kenya Revenue Authority (KRA) has been restrained from auctioning, transferring, disposing or interfering with assorted goods in 18 containers belonging to a company on account of customs, tax or statutory liabilities not attributable to the consignment.

The High Court in Mombasa issued the orders on Thursday, April 2, 2026, pending hearing and determination of a case filed by Real Image Logistic Ltd challenging the detention of the goods by the taxman.

Real Image Logistic Ltd says in its case documents that the containers contain assorted goods belonging to about 917 small scale traders.

The company says that it holds a direct commercial, beneficial and possessory interest in the consignments and the immediate right to demand delivery upon lawful clearance.

The company says that it engaged North Link Cargo Ltd, Greatmail Logistics Ltd and Nuh Mohamud to receive, consolidate, ship insure, clear and facilitate delivery of the consignment into the country.

“The plaintiff (Real Image Logistic Limited) performed its obligations and expected release of the goods upon payment of lawful charges attributable to the present shipment only,” part of the case documents state.

Real Image Logistic Ltd further says that upon arrival of the goods, KRA detained the containers, classified the cargo as unentered goods and threatened sale/auction on the basis of an alleged customs liability arising from an earlier and separate shipment.

“The plaintiff is not party to the alleged historical debt and the present consignments belong to different traders who have no connection with the earlier shipment,” the company says in its case documents.

According to the company, the continued detention is unlawful, oppressive and causes daily accrual demurrage, storage and incidental charges while exposing it to claims by the owners of the goods.

The company argues that its case is that the customs and tax liability relied by KRA does not arise from the 18 containers but from an earlier and separate shipment and that the current consignments belong to different traders with no nexus to an earlier shipment.

The court ordered parties to file their defences and affidavits and fixed the case for hearing on April 8, 2026.