NAIROBI, Kenya – The National Assembly’s Finance and National Planning Committee has issued a seven-day ultimatum to Kenya Revenue Authority (KRA) Commissioner-General, Humphrey Wattanga, demanding an explanation over the mis-declaration of Sh64 billion in revenue by Louis Dreyfus Company (LDC) in the ongoing edible oil scandal.
Committee Chair, Molo MP Kimani Kuria, warned Wattanga that failure to appear before the committee next week would result in punitive sanctions.
The Commissioner-General had initially committed to appearing on November 26, 2024, a timeline the committee rejected, calling it a dereliction of duty in light of the urgent revenue concerns.
“This committee directs that KRA’s management must appear before us on Tuesday without fail. The loss of billions due to tax misdeclaration is a criminal matter that cannot wait,” said Ainamoi MP Benjamin Lang’at, the committee’s vice chairperson.
The controversy centers on LDC’s importation of palm oil products, which were allegedly misdeclared at the Port of Mombasa to evade taxes.
Parliamentary documents indicate that in 2022 alone, the government lost Sh16.5 billion in revenue due to 233,000 metric tonnes of palm oil being misdeclared as crude oil.
In 2023, the figure ballooned to Sh32.54 billion, with another Sh13.83 billion lost so far in 2024.
MPs expressed frustration over Wattanga’s failure to prioritize the committee’s summons, with Baringo South MP Benjamin Makilap accusing KRA of treating Parliament with contempt.
“It’s unacceptable for KRA to dictate to us when they will appear. This matter is costing the country billions, and pushing the hearing to November is simply delaying justice,” Makilap said.
Kitui Rural MP Bonnie Mwalika called for full transparency, demanding the disclosure of LDC’s directors, shareholders, and beneficial owners, stating, “We must know who is responsible for this tax evasion.”
The edible oil scandal has raised serious questions about KRA’s effectiveness in curbing revenue losses through misdeclaration.
Documents before the committee reveal that LDC companies imported palm oil products from Malaysia and Indonesia, declaring them as crude palm oil to avoid a 35% import duty.
In reality, much of the oil was imported in refined form, which attracts significantly higher taxes.
The committee is now demanding detailed records of palm oil imports and taxes paid by LDC and other firms, including Mazeras Oil Limited, Vipingo Industries, and Acee Limited.
The KRA Commissioner-General has been instructed to provide documentation on cargo volumes, import declarations, and tax payments dating from February 2023 to June 2024.
With the revenue loss scandal threatening to expose more lapses in KRA’s oversight, all eyes are on Wattanga as the committee prepares for a showdown next week.
The parliamentary probe aims to uncover whether KRA officials were complicit or negligent in allowing these massive tax losses to occur.
Failure to meet the committee’s demands could lead to severe repercussions for the KRA leadership, with lawmakers keen to hold those responsible for the revenue shortfall to account.
Committee Chair, Molo MP Kimani Kuria, warned Wattanga that failure to appear before the committee next week would result in punitive sanctions.
The Commissioner-General had initially committed to appearing on November 26, 2024, a timeline the committee rejected, calling it a dereliction of duty in light of the urgent revenue concerns.
“This committee directs that KRA’s management must appear before us on Tuesday without fail. The loss of billions due to tax misdeclaration is a criminal matter that cannot wait,” said Ainamoi MP Benjamin Lang’at, the committee’s vice chairperson.
The controversy centers on LDC’s importation of palm oil products, which were allegedly misdeclared at the Port of Mombasa to evade taxes.
Parliamentary documents indicate that in 2022 alone, the government lost Sh16.5 billion in revenue due to 233,000 metric tonnes of palm oil being misdeclared as crude oil.
In 2023, the figure ballooned to Sh32.54 billion, with another Sh13.83 billion lost so far in 2024.
MPs expressed frustration over Wattanga’s failure to prioritize the committee’s summons, with Baringo South MP Benjamin Makilap accusing KRA of treating Parliament with contempt.
“It’s unacceptable for KRA to dictate to us when they will appear. This matter is costing the country billions, and pushing the hearing to November is simply delaying justice,” Makilap said.
Kitui Rural MP Bonnie Mwalika called for full transparency, demanding the disclosure of LDC’s directors, shareholders, and beneficial owners, stating, “We must know who is responsible for this tax evasion.”
The edible oil scandal has raised serious questions about KRA’s effectiveness in curbing revenue losses through misdeclaration.
Documents before the committee reveal that LDC companies imported palm oil products from Malaysia and Indonesia, declaring them as crude palm oil to avoid a 35% import duty.
In reality, much of the oil was imported in refined form, which attracts significantly higher taxes.
The committee is now demanding detailed records of palm oil imports and taxes paid by LDC and other firms, including Mazeras Oil Limited, Vipingo Industries, and Acee Limited.
The KRA Commissioner-General has been instructed to provide documentation on cargo volumes, import declarations, and tax payments dating from February 2023 to June 2024.
With the revenue loss scandal threatening to expose more lapses in KRA’s oversight, all eyes are on Wattanga as the committee prepares for a showdown next week.
The parliamentary probe aims to uncover whether KRA officials were complicit or negligent in allowing these massive tax losses to occur.
Failure to meet the committee’s demands could lead to severe repercussions for the KRA leadership, with lawmakers keen to hold those responsible for the revenue shortfall to account.
