Farmers Choice Limited has lost a tax appeal against the Kenya Revenue Authority (KRA) after the Tax Appeals Tribunal ruled that the company challenged a tariff classification decision after the statutory deadline.
The tribunal struck out the appeal and upheld KRA’s April 10, 2025, decision on the classification of PRO FIT 1:50, an ingredient imported by Farmers Choice for use in manufacturing processed meat products.
Dispute Over Import Tariffs
The dispute arose from two consignments imported by Farmers Choice in October 2024.
The company initially declared PRO FIT 1:50 under a general food preparation tariff. KRA, however, reclassified the product under a tariff category covering preparations used in the manufacture of food and beverages.
The reclassification resulted in tax demands of approximately KSh2.3 million and KSh1 million.
Farmers Choice challenged the additional taxes, arguing that KRA had applied a 25 per cent import duty instead of 10 per cent.
The company also disputed the application of a 2 per cent Railway Development Levy instead of 1.5 per cent, as well as the VAT imposed on the consignments.
Tribunal Rules Appeal Was Filed Late
Farmers Choice further argued that KRA had failed to issue its review decision within the required 30-day period.
The tribunal, however, did not proceed to determine whether the disputed taxes were legally payable.
Instead, it found that the company was required to challenge KRA’s April 10, 2025, decision within 45 days, as provided under the East African Community Customs Management Act.
Farmers Choice filed its appeal before the tribunal on January 16, 2026, several months after the statutory deadline.
The tribunal consequently ruled that the appeal was invalid and struck it out.
The decision means the tribunal did not determine the merits of Farmers Choice’s arguments regarding the tariff classification, import duty, Railway Development Levy or VAT.
