KRA boss summoned over alleged Ksh.62B tax loss in palm oil import saga

The Kenya Revenue Authority (KRA) Commissioner General has been summoned to appear before the National Assembly’s Departmental Committee on Finance and National Planning over the alleged loss of Ksh.62 billion in customs tax revenue due to tax evasion through misdeclaration of palm oil at the Port of Mombasa.

This follows a report aired on Citizen TV on August 23, 2024, of how a Dutch firm may have evaded taxes amounting to the said amount in a palm oil importation deal.

In a letter to Citizen TV, KRA stated that the consignment in question had undergone routine customs checks and was subjected to multiple checks by relevant government agencies.

These checks, according to the taxman, reportedly revealed no anomalies, and the consignment was cleared as crude oil, not refined oil.

In its letter, signed by Andrew Osiany, the Deputy Commissioner for Marketing and Communication, the KRA reiterated that no revenue was lost.

The National Assembly’s Departmental Committee on Finance and National Planning is now seeking further clarification.

In a letter in our possession dated August 29, 2024, and addressed to KRA Commissioner General Humphrey Wattanga, the committee has expressed concern over the potential loss of Ksh.62 billion in customs revenue.

The committee referenced the period between February 23, 2023, and June 26, 2024, and cited information suggesting possible tax evasion by Louis Dreyfus Company Asia PTA Ltd and its Kenyan subsidiary.

"The committee’s attention has been drawn to information in the public domain and documents in its possession regarding an allegation of potential loss of Ksh.62 billion customs tax revenue due to alleged tax evasion through the misdeclaration of cargo by Ms Louis Dreyfus Company Asia PTA Ltd and Ms Louis Dreyfus Company Kenya Limited between 23rd February 2023 and 26th June 2024," stated the letter.

The KRA Commissioner General has been summoned to appear before the committee on September 13, 2024.

The consignment was subjected to various checks by relevant government agencies involved in cargo clearance processes at the port of entry, and the results did not reveal any anomaly based on the declaration made by the consignee.

All the relevant agencies cleared the consignment as crude oil and not refined oil as reported.