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Kenyans may have to pay more for salt after the country’s Supreme Court dismissed a case brought by a manufacturer in a tax dispute.
Supreme Court Justices Philomena Mwilu, Mohammed Ibrahim, Smokin Wanjala and Isaac Lenaola unanimously ruled that the court had no jurisdiction to hear the case filed by Krystalline Limited.
The Court of Appeal ordered the manufacturer to pay Sh185 million as the company had been mining salt for nearly 10 years without paying water bills, leading to the case being filed in the Supreme Court. Resource Management Bureau (WARMA) fees.
Appeal Court judges Daniel Musinga, Hellen Omondi and Ngenye Macharia upheld the ruling of Environment and Land Court judge Kossy Bor that the salt company should pay for seawater used in the salt extraction process.
The company argued that the amount it was asked to pay would harm its operations.
In response, WARMA urged the court to order Krystalline to deposit Sh100 million as security.
Krystalline Chief Executive Hasmita Patel said the company would be forced to shut down operations and sell assets to pay the bill, but WARMA said the amount sought was insignificant as Krystalline made billions of dollars from its salt business.
The water department said the case did not involve constitutional interpretation, a view the Supreme Court agreed with.
The bench headed by the deputy chief justice ruled: “We are of the view that this court has no jurisdiction to entertain the said petition for appeal and the application for stay filed on March 11, 2024 and submitted on March 15, 2024.”
On average, a kilogram of salt costs Sh25, with the smallest package (250 grams) costing Sh5. Salt is the only household commodity that has seen zero cost increase over the years, but manufacturers will now pass the cost on to the end consumer.
Like Kensalt, which faces a Sh270 million claim, Krystalline Salt Limited also put up a fierce fight.
Judge Bor dismissed Krystalline’s Water is a gift from God Therefore, the authorities have no right to claim the money and the constitution states that the management of all natural resources is vested in the government.
“The Constitution provides that the state must use the environment and natural resources for the benefit of the Kenyan people. This is the basis for the state to levy charges on water and other resources,” Justice Boer ruled.
WARMA requires Krystalline to pay for charges covering a 10-year period from 2007 to 2017.
Every year, the state-owned company is required to pay interest of Sh185,000.
Kensalt first approached Senior Judge Oscar Angote for a much-needed reprieve, but the scales of justice tipped in WARMA’s favor.
The judge dismissed the case before it went to trial.
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