No tax revenue lost in palm oil import deal—KRA
The taxman has told lawmakers that Kenya did not lose any tax revenue in palm oil import transactions involving Louis Dreyfus Company (K) Ltd between 2023 and this year.
Appearing before MPs, the Kenya Revenue Authority (KRA) Commissioner-General Humphrey Wattanga stated that Louis Dreyfus Company (K) Ltd did not directly import palm oil products into the Kenyan market, but sold it to local and regional companies.
It is these companies who were responsible for declaring the products and paying the necessary taxes, Mr. Wattanga explained.
“Louis Dreyfus Company (K) Ltd does not import any products directly into the market but sells to local and regional companies for declaration into home use and/or transit,” Mr. Wattanga noted, adding that, this arrangement ensured that the country collected the correct amount of taxes from the respective buyers.
Mr Wattanga’s statement comes amid scrutiny by the National Assembly’s Finance Committee, which questioned the total taxes and fees collected from palm oil imports between February 2023 and June 2024.
KRA disclosed that 546,588.86 metric tonnes (MT) of palm oil products—including crude palm oil, crude palm olein, and other derivatives—were imported into and through Kenya by Louis Dreyfus Company Asia PTA between February 2023 and June 2024.
Of this, 231,450.48 MT was consigned for transit to regional importers, including buyers in regional markets of Uganda, Tanzania, and Rwanda. Additionally, six companies, including Vipingo Industries Ltd and Mazeras Oil Ltd, imported 315,138.38 MT from Louis Dreyfus.
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Palm oil for local use
Three Kenyan companies—Acee Ltd, Mazeras Oil Ltd, and Vipingo Industries Ltd—declared 163,103.57 MT of palm oil for local use, paying Kes4.5 billion in taxes during the period, the KRA chief explained.
Wattanga affirmed that all importation procedures adhered to the relevant customs and tax laws. “KRA has collected all relevant taxes required, considering factors such as product description, tariff classification, product quantity, product value, and country of origin,” he stated.
The Commissioner-General added that the authority’s commitment to due diligence extended to every stage of the import process, ensuring that no revenue was lost.
In response to broader concerns about tax evasion and illicit trade, KRA said that it has enhanced surveillance at border points and within the market.
Mr. Wattanga highlighted initiatives such as a dedicated border security unit and the integration of advanced technologies aimed at preventing smuggling, commercial fraud, and other threats.
KRA’s collaboration with other agencies at ports of entry ensures thorough customs checks, lab tests, and inspections, he noted. These processes verify that consignees’ declarations are accurate, with all applicable taxes collected before clearance is granted.
