KRA seizes smuggled sugar worth Sh28mn in Kilindini
Containers at the Kilindini harbour: KRA says it has commenced immediate investigations on the tax evasion act as part of a broader campaign to seal revenue leakages. PHOTO | FILE
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Impound comes barely a week after the closure of two container freight stations associated with Mombasa Governor Hassan Joho, which locked up close to 40,000 tonnes of Pakistani rice.
The Kenya Revenue Authority (KRA) on Thursday impounded 16 containers loaded with contraband sugar valued at Sh28 million at the Kilindini Port Container Terminal.
The taxman identified the importer as Ms. Flowlmer Distribution Company.
The commissioner of customs and border control, Julius Musyoki, said that the cargo had been mis-declared in the vessel manifest submitted to KRA as “Dividing heads part of grinding machine” and “Truck Boring Mesh” packages rather than imported sugar, which is a restricted commodity.
“The 16 containers verified so far are loaded with sugar packed in Kakira Sugar Company bags to ostensibly mask its origin,” said Mr Musyoki.
He said in a statement that the Uganda-based sugar company and any other imports originating from the firm would ideally enter the country by road or rail haulage through the land borders and not through the port via sea vessels.
Mr Musyoki added that KRA has commenced immediate investigations on the tax evasion act as part of a broader campaign to seal revenue leakages.
“Commission of such acts undermines our tax collection objectives while frustrating the broader national development agenda geared at promoting Kenyan enterprise,” he said.
The continued smuggling of sugar into the country by unscrupulous traders has undermined the State's objective to promote the consumption of locally grown sugar.
The seizure comes barely a week after the closure of two container freight stations associated with Mombasa Governor Hassan Joho, which locked up close to 40,000 tonnes of Pakistani rice at the port.
The simmering trade row between Kenya and Pakistan over the consignment adds to a chain of on and off feuds that have stretched the two countries' delicate economic ties.
