Kakuzi now denies link to seized car battery container

What you need to know:

KRA officials last week impounded two 20-foot containers packed with batteries that were declared as 880 bags of Kenyan tea.
The exporter was listed as Kakuzi Limited while the clearing agent was named as Kapwel Enterprises.
Kakuzi said it did not participate in the contraband trade, adding that it was a victim of the fraud.

Agricultural firm Kakuzi has denied it was involved in last week’s attempt to illegally export used car batteries to South Korea.

Kenya Revenue Authority (KRA) officials impounded two 20-foot containers packed with batteries that were declared as 880 bags of Kenyan tea.

The exporter was listed as Kakuzi Limited while the clearing agent was named as Kapwel Enterprises, with the taxman saying the two parties will be prosecuted once investigations are complete.

The Nairobi Securities Exchange (NSE)-listed firm said it did not participate in the contraband trade, adding that it was a victim of the fraud.

“Kakuzi Limited has had no dealings with the clearing and forwarding agent named in the media reports,” the firm said in a statement. “We will cooperate fully with the relevant authorities handling the investigations to determine the facts behind these fraudulent export entries.”

Kakuzi said it stopped exporting tea in 2008 and has since then focused on selling fresh avocados and processed macadamia nuts to external markets.

The firm grows and sells tea in the local market. The KRA said those engaged in the illegal trade will be charged according to the provisions of the Scrap Metal Act, 2015.

The law bans the export of scrap metal which includes used motor vehicle batteries.

“A person shall not export scrap metal in any form,” reads the law which was enacted to protect users of scrap metal and tame vandalism of public infrastructure and private property.

Exports of scrap metal may only be allowed temporarily following consultations among the Scrap Metal Council and the ministers for Treasry and Industrialisation.

A certificate for each consignment shall be issued by the principal secretary in the Industrialisation ministry.

Those flouting the law are liable on conviction to a fine not exceeding Sh10 million or imprisonment for a term not exceeding five years or to both.

KRA’s regional manager Nicholas Kinoti said the clearing agent also risks suspension for facilitating the export of prohibited goods.

The seized batteries are part of contraband goods declared as tea leaves which allegedly enjoy lesser scrutiny from KRA and port officials to fast-track export of the commodity.

A shipment of more than three tonnes of ivory, marked as tea leaves from Kenya and destined to Laos, was seized in Thailand last year.

Less stringent checks on tea exports came after mandatory scanning of all containers last year led to a major delay in export of the commodity.