The Malindi High Court on Monday issued a temporary order preventing the Kilifi County Government from taking over the revenue collection points manned by the private company Raindrops limited.
Malindi Resident Judge Stephen Githinji ordered the county government to take over collection points and/or collect taxes and parking revenue from the company pending the between parties hearing and determination of a lawsuit brought by Raindrops limited.
“It is hereby ordered that an interlocutory injunction be and is hereby issued restraining the Kilifi County Government and/or any other third party…from taking over collection points and/or tax collection and parking fees pending the hearing and decision of this application between parties“, said the judge.
The lawsuit, which has also been certified as urgent, follows a decision by the county administration to terminate the services of the company that has been collecting the parking tax on its behalf since 2013.
In January 15, 2022, the County Finance Department, issued a warning notice the traders against paying the money to Raindrops and instead ordered them to pay their dues to the respective county revenue offices and county revenue officers.
“Raindrops limited is no longer authorized to transact on behalf of Kilifi County Government from Monday 17th January 2022,” the notice reads, adding that the county administration would not be liable for monies paid to Raindrops.
Angered by the county administration’s decision, the company directors went to the Malindi High Court under an emergency certificate to seek judicial intervention. This led to the injunction issued by Judge Githinji on Monday.
On Tuesday, Raindrops Limited officials expressed joy at the temporary reprieve but urged the national government to intervene in the dispute between the company and the county administration.
Raindrops chief executive Shaib Mgandi said following the court order the company’s operations would resume on Wednesday and urged those forced to pay taxes to the county government to do so through Raindrops.
He accused the county government of using police officers to hunt company employees and urged security guards to keep employees safe as they return to duty now that the court has issued the order.
“The county government has incited the public against the company and its employees, so it is necessary for the security apparatus to ensure the safety of our employees at all collection points so that they are not attacked,” said he declared.
Mgandi said the company has collected about Ksh 37 million on behalf of the county government per month, compared to the Ksh 3 million the county administration had collected before engaging the company, noting that since 2013 it had collected Ksh 1.9 billion on parking fees. and cease.
The company’s accountant, Elijah Mbigo, said the company had signed a 15-year contract with the county administration to collect revenue from two streams and that terminating the services seven years earlier was a clear breach of contract .
He said his company uses sophisticated ICT equipment to collect revenue, unlike the county government, which he said was using an outdated system.
“Comparing county government collections and ours is like night and day because they use the outdated manual system and guesswork while we have sophisticated ICT equipment where everyone linked to the system can see the discount as it is paid in real time,” he said.