The Kenya Revenue Authority came under parliamentary scrutiny on Thursday over its clearance of imported raw sugar that received nearly Ksh3 billion in tax exemptions.
The National Assembly Departmental Committee on Trade questioned KRA officials about the consignment. Commissioner for Customs and Border Control Lilian Nyawanda said the importer had complied with all requirements and paid about Ksh500 million in import duty.
Lawmakers raised concerns about exemptions on Value Added Tax, Excise Duty, Import Declaration Fee, Railway Development Levy, Sugar Development Levy and Merchant Shipping Levy. These waivers resulted in an estimated Ksh2.98 billion in forgone revenue.
The committee noted missing details on the manufacturer, manufacture date and expiry date. Commercial documents listed a seller in Singapore while the certificate of origin indicated South Africa.
Committee Chairperson Bernard Shinali said the circumstances required a thorough investigation. He added that the huge tax losses must be explained.