9 Aug 2018 in National Assembly:
During the same period, 829,871 metric tonnes of sugar were imported against a deficit of 349,889 metric tonnes based on the local production of 367,118 metric tonnes hence resulting to overimportation by 454,760 metric tonnes. A total of 194 Companies imported sugar during the duty free period. We went to any length to get all the companies that imported sugar with all the directors. We have the Report with us.
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9 Aug 2018 in National Assembly:
The Gazette Notice No. 4536 failed to give guidelines on quality and quantity and type of sugar that was to be imported, whereas importation of milk powder was specified in paragraph (b) of the same Gazette Notice. The CS, National Treasury opened up the otherwise well- regulated sugar importation process which was taken advantage of by other unscrupulous traders. This allowed importation in excess of 800,000 metric tonnes of sugar. 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.
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9 Aug 2018 in National Assembly:
We also had an interaction with the Ministry of Agriculture because the Ministry, through AFF gives the licences. After the expiry of Gazette Notice No. 4536 on 31st August 2017, the CS for National Treasury following the advice of the CS Agriculture, Livestock and Fisheries published a subsequent Gazette Notice No. 9801 on 4th October 2017 which is annexed, extending the duty free period from 1st September 2017 to 31st December 2017 destined to a port in Kenya and consigned to a local sugar miller. The Gazette Notice No. 9801 as amended by Gazette Notice No. 10149 published on 13th ...
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9 Aug 2018 in National Assembly:
The Gazette Notice No. 9802 amended Gazette Notice No. 4536 to specify that only sugar loaded on a vessel between 12th May 2017 and 31st August 2017 would qualify for importation on a duty free basis. The failure to specify whether the waiver of duty was applicable to sugar loaded on a vessel within the duty free window or sugar imported within the duty free window was abused by unscrupulous traders. There was no justification as to why 14 companies were given preferential treatment during the clearance of imported sugar. We have annexed the 14 companies.
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9 Aug 2018 in National Assembly:
Hon. Speaker, before we go to recommendations, it is also good to note the issue of handling of sugar and disposal. The handling, offloading, bagging, storage and transportation of some of the sugar was done in contravention of the standards set out in KES: EAS 749:2010. From field visits conducted by the Committee in Mombasa, Nakuru and Nairobi, it was evident that the sugar was stored in unhygienic conditions contrary to Section 127 of the Public Health Act. Specific violations included transporting sugar in open tippers which were also used to ferry other non-food products such as fertiliser, klinker and ...
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9 Aug 2018 in National Assembly:
According to the CS, Interior and Co-ordination of National Government, 95 per cent of sugar was imported through the port of Mombasa but there was a 5 per cent component of sugar that found itself through our porous border. He clearly said it is through Mogadishu. The fitness of that sugar could not be ascertained because it is considered contraband.
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9 Aug 2018 in National Assembly:
From the samples collected from 45 counties by KEBS and laboratory analysis by the Government Chemist, contamination of sugar was majorly in moisture, yeast, moulds, total viable count and polarisation. Sugar suspected to be laced with mercury was detected in two areas but our efforts to validate the same were thwarted by the multi-agency taskforce. Efforts by the Joint Committee to validate the findings of the Government Chemist on the presence of mercury in the seized consignment of sugar by independent agencies namely the University of Nairobi and the Kenya Plant Health Inspectorate Service (KEPHIS) were unsuccessful after they were ...
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9 Aug 2018 in National Assembly:
Two, the importers, wholesalers, and millers dealing in contaminated sugar should be investigated by the relevant government agencies with a view to prosecution for violating the provisions of Section 3 of the Food, Drugs and Chemical Substances Act (Cap. 254), Section 131 of the Public Health Act (Cap. 242) and any other relevant law. 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.
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9 Aug 2018 in National Assembly:
Three, the Kenya Revenue Authority should recover duty payable on all sugar imported between 1st September and 3rd October 2017. The importers benefited as a result of the retrospective application of the law vide Gazette Notice No. 9801.
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9 Aug 2018 in National Assembly:
Four, the Directorate of Criminal Investigation and the Ethics and Anti-Corruption Commission should investigate the alleged irregular transaction between South Nyanza Sugar Company Ltd and all other companies for the alleged tax evasion of approximately Kshs2.5 billion.
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