Kenya Revenue Authority (KRA) has dismissed allegations of losing an estimated Sh64 billion in tax revenue due to misdeclaration of crude palm oil cargo at the Port of Mombasa.
National Assembly Finance and Planning Committee is investigating palm oil shipments that entered Kenya between March 2023 and June 2024, following claims from members of parliament about cargo misdeclaration.
The inquiry focuses on three companies: M/S Acee, M/S Mazeras Oil Limited, and Vipingo Industries Limited.
The committee has requested KRA to provide details of the total volume of palm oil imports managed by LDC Asia PTA at the port during the period from February 23, 2023, to June 2024.
This includes volumes of various palm oil products, such as RBD Palm Stearin, Crude Palm Kernel Oil, Crude Palm Olein, Crude Palm Oil, and Crude Palm Fatty Acid Distillate. The committee also wants information on the total taxes and fees paid by the company.
During the investigation, Molo MP and committee chair Kuria Kimani (pictured) wondered why KRA cleared imports declared as crude palm oil when they were allegedly refined. KRA Deputy Commissioner for Investigations and Enforcement, Levi Mukhweso, defended the agency, stating that tests conducted on the shipments confirmed compliance with local crude palm oil import standards.
“KRA is satisfied that it has followed all due diligence as outlined in customs procedures and tax laws. Based on assessments, KRA collected all relevant taxes, considering product description, tariff classification, quantity, value, and country of origin,” he explained.
KRA Commissioner General Humphrey Wattanga asserted that no tax revenue was lost, emphasising that Louis Dreyfus Company (K) Ltd did not import products directly but sold to local and regional firms that declared taxes. He disclosed that between February 2023 and June 2024, a total of 546,588.86 tonnes of various palm oil products were imported through Kenya by Louis Dreyfus Company Asia PTA.
Baringo North MP Joseph Makilap sought clarification on what prompted the tests on some consignments.
He questioned whether KRA had specific information that warranted the tests, noting that the load survey indicated the goods were refined palm oil. KRA maintained that tests by Kenya Bureau of Standards (Kebs) and its internal lab confirmed the shipment was crude palm oil.
Between February 2023 and June 2024, six local companies imported 315,138.38 metric tonnes of products from Louis Dreyfus Company Asia PTA Limited.
Four companies—M/S Louis Dreyfus Company Kenya Limited, M/S Acee Limited, M/S Mazeras Oil Limited, and Vipingo Industries Limited—accounted for 240,044.74 tonnes.
KRA data shows it collected Sh4.55 billion in taxes from 162,250.21 metric tonnes imported by these firms. Vipingo Industries Limited, the largest importer, paid Sh3.73 billion in taxes for 137,724.29 tonnes.
Wattanga told the committee that all procedures were followed during the importation and clearance of the palm oil products, emphasizing KRA’s commitment to legal compliance in tax administration and trade facilitation.