A Kenyan technology company has filed a lawsuit against the Kenya Revenue Authority (KRA) and Treasury Cabinet Secretary John Mbadi, claiming their recently launched Advance Cargo Declaration (ACD) system unlawfully copies the company's proprietary cargo tracking technology.
The firm alleges it first presented the concept to KRA officials in 2023 at Times Tower, providing detailed demonstrations including system architecture, risk assessment modules, and operational blueprints. According to the petitioners, KRA representatives expressed strong interest and positive feedback during the pitch, leading the company to anticipate a formal contract.
However, in 2026, KRA unveiled its own ACD system without engaging or compensating the company. The tech firm contends that key features such as pre-shipment declarations, reference codes, and risk assessment approaches closely mirror its original design, suggesting unauthorized use of its intellectual property.
The petitioners estimate their system could help recover up to Ksh826 billion in annual losses and save over Ksh23 billion in technology costs. Despite attempts to resolve the matter directly, including an appeal to CS Mbadi, communication with KRA ceased after the initial presentations.
Legal Remedies Sought
- The company demands that KRA immediately cease using the ACD system, effectively shutting it down.
- Alternatively, if KRA continues running the system, the firm seeks a 30% royalty on all generated value, savings, and efficiencies.
As of the lawsuit's filing on August 4, 2026, neither KRA nor the Treasury have issued official responses. The ACD system was officially launched on August 3, 2026, and remains operational.
