NAIROBI, Kenya – The Kenya Revenue Authority (KRA) has firmly refuted allegations that it lost Sh64 billion in tax revenue due to the misdeclaration of crude palm oil cargo at the Port of Mombasa.
This denial comes amid an ongoing parliamentary probe investigating claims of tax irregularities linked to palm oil shipments between March 2023 and June 2024.
The National Assembly’s Finance and Planning Committee, currently conducting the inquiry, flagged three companies—Acee Limited, Mazeras Oil Limited, and Vipingo Industries Limited—after receiving intelligence suggesting possible cargo misdeclaration.
Legislators have asked the tax authority to provide comprehensive records of palm oil imports handled by Louis Dreyfus Company Asia PTA during the period in question, including details on the types of products imported and taxes paid.
KRA, however, has defended its actions. Speaking before the committee, KRA Deputy Commissioner for Investigations and Enforcement, Levi Mukhweso, emphasized that the authority followed all due procedures when assessing the shipments, maintaining that all applicable taxes had been collected.
“KRA is satisfied that it has followed the proper customs procedures and tax laws in assessing these imports. Tests conducted on the shipments confirm that they met the standards for crude palm oil. We collected the requisite taxes based on the proper product description, tariff classification, and valuation,” said Mukhweso.
He further assured the committee of KRA’s continued cooperation, promising to provide any additional information required.
KRA Commissioner General Humphrey Wattanga also defended the authority, stating that no direct imports were made by Louis Dreyfus Company Kenya Ltd.
He clarified that taxes on products imported by the company were declared by the local and regional firms that received the shipments.
“M/S Louis Dreyfus Company (K) Ltd does not import products directly into the Kenyan market but sells to local companies for either home use or transit. The taxes on these products are declared by those companies,” Wattanga explained.
The parliamentary committee had raised concerns over discrepancies in the nature of the palm oil imports, with some MPs pointing to reports suggesting that the cargo was refined rather than crude palm oil.
However, KRA maintained that both tests conducted by the Kenya Bureau of Standards (KEBS) and its own internal assessments confirmed the product to be crude palm oil.
Baringo North MP Joseph Makilap questioned why KRA conducted tests on certain consignments under probe.
He highlighted findings from a load survey report, which indicated that the goods in question were refined palm oil.
Despite these concerns, KRA stood by its earlier assertions that the shipment adhered to the import standards for crude palm oil.
Data presented during the hearing revealed that between February 2023 and June 2024, six local companies imported a total of 315,138 metric tonnes of palm oil-related products from Louis Dreyfus Company Asia PTA.
Notably, Vipingo Oil Industries Ltd imported the largest share—137,724 metric tonnes—paying Sh3.73 billion in taxes.
This denial comes amid an ongoing parliamentary probe investigating claims of tax irregularities linked to palm oil shipments between March 2023 and June 2024.
The National Assembly’s Finance and Planning Committee, currently conducting the inquiry, flagged three companies—Acee Limited, Mazeras Oil Limited, and Vipingo Industries Limited—after receiving intelligence suggesting possible cargo misdeclaration.
Legislators have asked the tax authority to provide comprehensive records of palm oil imports handled by Louis Dreyfus Company Asia PTA during the period in question, including details on the types of products imported and taxes paid.
KRA, however, has defended its actions. Speaking before the committee, KRA Deputy Commissioner for Investigations and Enforcement, Levi Mukhweso, emphasized that the authority followed all due procedures when assessing the shipments, maintaining that all applicable taxes had been collected.
“KRA is satisfied that it has followed the proper customs procedures and tax laws in assessing these imports. Tests conducted on the shipments confirm that they met the standards for crude palm oil. We collected the requisite taxes based on the proper product description, tariff classification, and valuation,” said Mukhweso.
He further assured the committee of KRA’s continued cooperation, promising to provide any additional information required.
KRA Commissioner General Humphrey Wattanga also defended the authority, stating that no direct imports were made by Louis Dreyfus Company Kenya Ltd.
He clarified that taxes on products imported by the company were declared by the local and regional firms that received the shipments.
“M/S Louis Dreyfus Company (K) Ltd does not import products directly into the Kenyan market but sells to local companies for either home use or transit. The taxes on these products are declared by those companies,” Wattanga explained.
The parliamentary committee had raised concerns over discrepancies in the nature of the palm oil imports, with some MPs pointing to reports suggesting that the cargo was refined rather than crude palm oil.
However, KRA maintained that both tests conducted by the Kenya Bureau of Standards (KEBS) and its own internal assessments confirmed the product to be crude palm oil.
Baringo North MP Joseph Makilap questioned why KRA conducted tests on certain consignments under probe.
He highlighted findings from a load survey report, which indicated that the goods in question were refined palm oil.
Despite these concerns, KRA stood by its earlier assertions that the shipment adhered to the import standards for crude palm oil.
Data presented during the hearing revealed that between February 2023 and June 2024, six local companies imported a total of 315,138 metric tonnes of palm oil-related products from Louis Dreyfus Company Asia PTA.
Notably, Vipingo Oil Industries Ltd imported the largest share—137,724 metric tonnes—paying Sh3.73 billion in taxes.
