KAKAMEGA, Kenya, Dec 19 – A hospital based in Kakamega’s Butere sub-county is set to install a Sh21 billion solar plant to power Magnetic Resonance Imaging (MRI) in a bid to enhance delivery of services to the local community.
The solar equipment was part of a shipment including MRI machines shipped into the country in eighteen containers and which was held over unpaid taxes.
Treasury Secretary Ukur Yatani approved a tax exemption for Hamptons Hospital on December 8 after a prolonged court battled.
The equipment arrived at Hamptons Hospital which is part of Mwale Medical and Technology City in Butere, Kakamega County on Saturday. The hospital is associated Kenyan businessman and investor Julius Mwale.
The tax exemption followed an intense legal battle at the High Court in Nairobi in which the Kenya Revenue Authority (KRA) was barred from auctioning the hospital’s solar power plant machines and equipment.
In a ruling issued in September 2021, Justice Jairus Ngaah ordered KRA to halt its plan until the case filed by Hamptons Hospital, challenging the taxman’s decision, is heard and determined.
The equipment included 3 MRI machines worth Sh1.4 billion with one of them, a 7 Tesla MRI, costing Sh900 million.
The equipment arrived on May 27, and was stored in a warehouse awaiting application for tax exemption.
Hamptons Hospital through its lawyer Javier Munzala of the Hurlingham-based Javier Georgiadis and Sylvester Law LLP told the court the equipment was imported primarily to support the hospitals quest for provision of cancer care.
Munzala told the court that the hospital asked Health Cabinet Secretary Mutahi Kagwe to have the items exempted from tax, a request the CS granted.
“The applicant (Hamptons) is a recognized medical provider and as such, is exempted from payment of VAT on goods imported in connection with providing healthcare in Kenya,” Munzala said when the matter came up in court.
“The imported goods are unique, irreplaceable and worth a colossal sum of money. The applicant stands to suffer irreparable loss and damage that cannot be compensated by way of damages if the auction is allowed to proceed as planned,” Munzala added.
The National Treasury later confirmed to court, in a hearing heald on December 14, that Yatani had acceded to the request.
“In accordance with the provisions of the VAT Act, 2013, 1st Schedule, Part I, Item 63 and Part II, Item 27, the Cabinet Secretary, National Treasury and Planning approved on 8th December , 2021, remission of VAT, in respect of goods and services purchased locally/imported by Hamptons Hospital Ltd for construction of Hamptons Specialized Hospital which is part of the Mwale Medical and Technology City in Butere, Kakamega County,” Yatani stated in a letter addressed to Kagwe.
“In order to effect the remission, you are requested to submit the relevant importation/purchase documents i.e. Air Waybills, Bills of lading, Invoices, and IDF with a forwarding letter indicating the items being imported/purchased locally for our necessary action. In addition, the Ministry of Health will take responsibility for the items that are granted exemption,” the National Treasury CS noted.
The judge requested the parties to file a consent in court, confirming the clearance of hospital’s goods by KRA, and scheduled a mention for January 26th, 2022 to close the case.
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