The High Court has shut down a late bid by Hashi Energy, now in liquidation, to table new evidence in its KSh 7.18 billion tax appeal, tightening the screws on the once-prominent regional fuel trader.
In a ruling delivered by Justice Ado Moses, the court dismissed Hashi’s application to introduce additional documents just two days before judgment was due in its case against the Kenya Revenue Authority. The judge held that the move fell well short of appellate standards and cut against the principle that litigation must eventually come to an end.
The court found that Hashi had failed to explain why the material could not have been presented earlier, noting that most of the records were within the company’s own custody. Justice Moses also observed that the application appeared aimed at plugging gaps highlighted by the Tax Appeals Tribunal rather than addressing a genuine question of law.
The documents the company sought to rely on included fuel supply agreements with the United Nations, sales records, stock movement data, bank statements, and loan documents tied to its operations in the Democratic Republic of Congo.
“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,” the judge said, adding that Hashi had offered no convincing justification for the delay.
The ruling further warned that admitting new factual material at that stage would wrongly convert the High Court into a trial court, contrary to the legal framework for tax appeals, which confines the court to points of law. The judge also criticised Hashi for failing to attach the documents it wished to introduce, leaving the court unable to test their relevance or reliability. Arguments that the records were hard to obtain because they were held overseas or involved third parties were rejected as inadequate.
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The decision comes against the backdrop of Hashi Energy’s orderly dismantling. Founded by Ahmed Hashi and once active across East and Central Africa, the firm offloaded most of its assets in 2024 to service heavy debts, including about KSh 5 billion owed to Ecobank.
The liquidator has moved to sell 31 prime movers, largely SITRAK trucks stationed in Mombasa, Eldoret, and Nairobi, along with a gas cylinder revalidation plant on Nanyuki Road. A range of properties is also up for sale, spanning LPG facilities, warehouses, offices, and long-lease plots in Changamwe, Kisumu’s industrial area, and other locations.
Hashi’s roots trace back to the 1990s, when it operated as a kerosene distributor for Chevron Kenya. It later expanded regionally, rebranded as Hashi Energy in 2008, and ventured into bulk fuel trading and exports. The company exited retail by selling its petrol stations to Tanzania’s Lake Oil in 2017 and later secured a US$140 million supply contract with a Dubai-based group to serve customers in the DRC.
As financial pressures mounted, Hashi opted for voluntary liquidation in March 2023, appointing a liquidator to oversee the sale of its remaining assets. With the High Court now refusing to admit fresh evidence, the scope of its tax battle has narrowed further, even as the company itself is being broken up and sold piece by piece.
