Probe sugar importation scandal, demand farmers
Kenya Sugarcane Growers Association secretary-general Richard Ogendo addresses journalists in Kisumu in February.
What you need to know:
- The government had approved the importation of 57,473 metric tonnes of sugar aimed at covering the deficit of the sweetener.
- The farmers are now demanding to know why the government cleared 10 companies owned by the same people.
A Kisumu MP and sugarcane growers now want investigative agencies to move swiftly and probe circumstances under which companies registered a few months ago were allowed to import sugar without following the due process.
Muhoroni lawmaker Onyango K’Oyoo and Kenya Sugar Cane Growers Association secretary-general Richard Ogendo want the Directorate of Criminal Investigations and the Ethics and Anti-Corruption Commission to establish why six out of 10 companies were cleared to import sugar without providing three-year audited statements of accounts and Kenya Revenue Authority tax clearance certificates.
The government had approved the importation of 57,473 metric tonnes of sugar aimed at covering the deficit of the sweetener under the Common Market for Eastern and Southern Africa (Comesa) safe guards.
In a notice by KRA Acting Commissioner for Customs and Border Control Pamela Ahago, the revenue commission called on their officials to facilitate clearance of the consignments for companies that have imports from the Agriculture and Food Authority (AFA).
Sugar industry
She, however, exempted 10 companies, with a total volume of 10,000 metric tonnes lying in various Container Freight Stations in Mombasa, from the import permit requirements.
The ten companies include Big Two Commodities Ltd, Commodix Ltd, Fixate Commodities, Niate Commodities, Ifox Commodities, Pacematt Commodities, Option Two Ltd, Pillarmatt Ltd, Niang Commodities Ltd and Pricematt Ltd.
Two people are directors of the 10 firms.
The farmers and the legislator are now demanding to know why the government cleared 10 companies owned by the same people.
“We would like to know how companies which were registered less than a year ago were cleared to import sugar. We find this a serious departure from normal practice,” said the Muhoroni MP.
He asked the government to take the sugar industry as seriously as it takes other sectors such as tea and coffee.
Mr Ogendo accused KRA of exempting the ‘big fish’ from paying taxes.
