The High Court has rejected a last-minute attempt by Hashi Energy, now under liquidation, to introduce fresh evidence in a KSh 7.18 billion tax appeal, adding pressure on the former regional fuel trader.
- •In his ruling, Justice Ado Moses dismissed Hashi Energy’s application to file additional documents just two days before judgment was due in its appeal against the Kenya Revenue Authority (KRA) holding that the move failed basic appellate standards and undermined the finality of litigation.
- •The court found that Hashi had not shown why the new material could not have been produced earlier, that the records were largely within the company’s control, and that the application appeared designed to patch weaknesses identified by the Tax Appeals Tribunal rather than resolve a point of law.
- •The rejected evidence included fuel supply contracts with the United Nations (UN), sales ledgers, stock movement schedules, bank statements, and loan records linked to operations in the Democratic Republic of Congo (DRC).
“Litigation must come to an end, and it does not matter that the evidence may be crucial if no sufficient reason is given for its late production. In this case, no sufficient reason has been provided why the evidence now sought to be admitted was not produced at trial,” Justice Ado Moses stated.
The ruling held that admitting fresh factual material at that stage would improperly turn the High Court into a trial court, contrary to the law governing tax appeals, which limits the court to questions of law. The judge also faulted Hashi for failing to attach the documents it sought to rely on, leaving the court unable to assess their relevance or credibility. Hashi argued that the documents had been difficult to obtain because they were held abroad and involved third parties but the court found that explanation inadequate.
The judgment comes after Hashi Energy dismantled what remained of its business. The company, founded by Ahmed Hashi and once active across East and Central Africa, sold off most of its assets in 2024 to meet mounting debts including about KSh5 billion owed to Ecobank.
The liquidator had put up for sale 31 prime movers, mostly SITRAK trucks based in Mombasa, Eldoret, and Nairobi, alongside a gas cylinder revalidation plant on Nanyuki Road. Properties in Mombasa’s Changamwe area, Kisumu’s industrial zone, and other locations are also on the block, including LPG facilities, warehouses, offices, and long-lease plots.
Hashi began in the 1990s as a kerosene distributor for Chevron Kenya, expanded westward, and rebranded as Hashi Energy in 2008 as it moved into bulk fuel trading and regional exports. It sold its petrol stations to Tanzania’s Lake Oil in 2017 and later struck a US$140 million supply deal with a Dubai conglomerate to serve clients in the DRC.
When financial strain followed, the company moved to wind itself up voluntarily in March 2023 and appointed a liquidator to oversee asset sales. With the High Court now closing the door on fresh evidence, Hashi’s tax fight narrows further, even with the company’s physical footprint being broken up and sold, asset by asset.
