Nairobi, July 27 -- Motor dealer DT Dobie Kenya, now in liquidation, has been ordered to pay Sh1.1 billion in customs duty on imported vehicle parts after the National Treasury failed to honour its promise to settle the tax.

The Tax Appeals Tribunal dismissed the company's appeal against the Kenya Revenue Authority (KRA), ruling that the Treasury's undertaking did not extinguish the importer's legal obligation to pay customs duty.

The dispute stemmed from duty-free imports of semi-knocked down (SKD) vehicle kits under a 2016 government programme aimed at reviving local vehicle assembly.

SKD kits are imported vehicle parts assembled locally. Unlike completely knocked down (CKD) kits, which qualified for duty-free importation under the c...