Kenya loses Sh62bn in revenue in crude palm oil saga at Mombasa port

Published 2024년 8월 19일

Tridge summary

Kenya has lost an estimated Sh62 billion in revenue over the past three years due to the importation of refined edible palm oil disguised as crude palm oil at the port of Mombasa. The majority of this importation, mainly from Malaysia and Indonesia, was intended for use in East African Community countries. The importation allows companies to evade taxes by declaring the product as crude palm oil, which is charged a lower duty than refined palm oil. The Louis Dreyfus Company (LDC), which has no contact information available, is among the entities involved in this misdeclaration. This strategy not only results in revenue loss for Kenya but also violates World Customs Organization guidelines.

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Original content

Eyebrows have been raised on how imported refined edible palm oil disguised as crude palm oil entered the port of Mombasa in a bid to evade taxes. The country is estimated to have lost Sh62 billion in revenue tax for the last three years as the importation of the product largely from Malaysia and Indonesia gained entry at the Mombasa Port. The imported refined oil was intended for use in the East African Community (EAC) countries of Kenya, Uganda, Tanzania and Rwanda. Imported refined palm oil is charged 35 percent duty while semi refined palm oil attracting 10 percent duty. The product also attracts Import Declaration Fee (IDF) at the rate of 2.5 percent, Railway Development Levy of 1.5 percent and Value Added Tax (VAT) 16 percent. Documents before parliament show that the product imported by Louis Dreyfus Company (LDC) was a blending of 60 percent crude palm oil with refined palm oil of 40 percent which is then declared as crude palm oil. In 2022 the government lost Sh16.5 ...

Source: UkrAgroConsult