BY KUSEKWA KUSEKWA
The High Court in Arusha has ordered Maina Holdings Limited, a beverage distributor, to pay more than Sh 378 million to the Arusha City Council (ACC) in unpaid service levy for 2022/2023 and 2023/2024 financial years.
The order, given by Judge Silvester Kainda, followed an out of court settlement reached between the company and the city authorities after reconciliation of accounts.
“The defendant shall further pay interest on the said sum at the rate of seven per cent per annum from the date of this judgement until full payment is made,” the judge ruled.
The service levy is a key source of revenue for local government authorities, charged on businesses operating within their jurisdictions.
Court record showed that the council had initially claimed Sh 457.5 million, along with a declaration of liability, a 30 per cent penalty on the unpaid levy, interest, general damages and costs.
However, following consultations between the parties, the amount was revised to Sh 378,831,993.49, which both sides confirmed in court as the actual outstanding liability. The agreement was first indicated during earlier proceedings and reaffirmed on March 28, 2026, when the parties confirmed that the reconciled figure accurately reflected the debt owed.
In endorsing the settlement, the court declined to grant additional reliefs sought by the council, including the declaration of liability, the 30 per cent penalty, general damages and costs. The ruling effectively brings the dispute to a close, with the company now required to settle the agreed amount together with interest.
