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{
    "id": 816857,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/816857/?format=api",
    "text_counter": 65,
    "type": "speech",
    "speaker_name": "Cherangany, JP",
    "speaker_title": "Hon. Joshua Kutuny",
    "speaker": {
        "id": 61,
        "legal_name": "Joshua Serem Kutuny",
        "slug": "joshua-kutuny"
    },
    "content": " Thank you, Hon. Speaker. I wish to make the following Statement. From 1st August 2018, Kenyans will be forced to pay more money to sustain a Kshs17 billion tender, the Excisable Goods Management System (EGMS), that was awarded to SICPA Security Solutions (SA) Ltd, a Swiss company awarded a tender to affix tax excise stamps on all local manufactured or imported essential goods, that is, bottled water, juices, soda and non-alcoholic beverages and cosmetics. This is meant to curb counterfeits and ease traceability of goods. The same stamps that KRA is trying to implement through EGMS have already been fitted by KEBS: stamps to curb counterfeits and ease traceability. To illustrate that, if you see this bottle of water, down here, there is a KEBS stamp. KRA wants to also affix another stamp on the top of every bottle of water. The EGMS Tender Number KRA/HQS/DP423/24/2015/EGMS3 was awarded by KRA to SICPA Solutions Ltd through single sourcing. The Kshs17 billion tender was awarded through single sourcing. The company is alleged to be facing a probe related to taxes in Brazil, Albania and Morocco. The EGMS requires manufacturers of excisable goods to pay SICPA Kshs1.50 for every stamp attached to every item. On an average, the bottles that run through the production lines of all manufacturers in a day are 30,000, meaning that SICPA will be collecting Kshs45 million per day. This is money that will be repatriated to Swiss. In a month, SICPA will be making Kshs1.2 billion and a total of Kshs16 billion in a year. With a contract running for five years, SICPA will reap Kshs81 billion in a tender originally negotiated for Kshs17 billion. This is a monumental rip-off. Hon. Speaker, to prove my assertions and the issue that I am raising, it is important to note that the first tender on the same matter, that is, Tender Number KRA/HQS/060/2010/2011/EGMS1 was issued in 2011 and terminated for lack of funds. The same was re-issued under tender number KRA/HQS/060/ICPE/037/2011/2012/EGMS2 in 2012 at a cost of Kshs4.8 billion, and then terminated again in 2015 on grounds it could not cover the The electronic version of the Official Hansard Report is for information purposes only. Acertified version of this Report can be obtained from the Hansard Editor."
}