KRA Commissioner General Humprey Wattanga
KRA Commissioner General, Mr Humphrey Wattanga, responded to questions by the National Assembly’s Finance Committee.
Home NEWS ECONOMY KRA Unleashes Key Details in Palm Oil Imports Tax Loss Probe

KRA Unleashes Key Details in Palm Oil Imports Tax Loss Probe

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The Kenya Revenue Authority (KRA) has affirmed that the country did not lose any tax revenue through the importation of palm oil by Louis Dreyfus Company (K) Limited between 2023 and 2024.

Responding to questions by the National Assembly’s Finance Committee regarding the total taxes and fees paid between 23rd February 2023 and 26th June 2024 through the importation of palm oil into Kenya, KRA Commissioner General, Mr Humphrey Wattanga, said no tax revenue was lost as Louis Dreyfus Company (K) Ltd did not import any products directly into the market.

Taxes on the products it imported were declared by the local and regional companies it sold the products to, Mr Wattanga said. “M/S Louis Dreyfus Company (K) Ltd does not import any products directly into the market but sells to local and regional companies for declaration into home use and/or transit,” he said.

He further detailed that a total of 546,588.86 Metric Tonnes (MT) of Crude Palm Oil (CPO), Crude Palm Olein (CPOL), Crude Palm Oil Kernel (CPOK), RBD Palm Stearin (RBDPS) and Palm Fatty Acid Distillate (PFAD) was exported into and through Kenya by Louis Dreyfus Company Asia PTA between 23rd February 2023 and 26th June 2024.

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“Of the total quantity imported, 231,450.48 MT was consigned as transit to nine (9) regional importers namely Mount Meru Millers (U) Ltd, Mount Meru Soyco Ltd Mukwano Industries (U) Ltd, Bajabeer Industries Ltd, Nile Agro Industries (U), Blue Star Industries, Kayonza Distributors Co. Ltd, Ntanke Bakery Ltd and Tasco Industries Ltd. 

During the same period, six (6) companies imported 315,138.38MT of the products from M/S Louis Dreyfus Company Asia PTA Ltd. The four companies were Louis Dreyfus Company (K) Ltd, Vipingo Industries Ltd, Acee Ltd, Mazeras Oil Ltd, Edible Oil Products Ltd, and Mvita Oils Ltd.

A total of sixteen (16) vessels laden with the products arrived in the country between 20th March 2023 and 22nd May 2024. There were no vessels in February 2023 and June 2024.

“Of the total quantities of the products imported, 163,103.57 MT was consigned to M/S Louis Dreyfus Company (K) Ltd for sale to local companies who later declared the products for home use and paid taxes. A total of KShs. 4,549,936,372.00 was paid by three companies, namely: Acee Limited, Mazeras Oil Ltd and Vipingo Industries Limited,” Mr Wattanga.

With regard to the process that was followed during the importation of the palm oil products into the country, the KRA Commissioner General affirmed that all procedures were followed to facilitate the clearance of the cargo, adding that KRA is committed to complying with all the laws in place as it executes its mandate of tax administration and trade facilitation.

“Concerning this matter, KRA is satisfied that it has been following all due diligence as outlined in the Customs procedures and tax laws. Based on its assessments, KRA has collected all relevant taxes required, considering factors such as product description, tariff classification, product quantity, product value and country of origin.” said Mr Wattanga.

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Written by
BT Correspondent -

editor [at] businesstoday.co.ke

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