- National Assembly Committee on Agriculture demanded Agriculture CS Mithika Linturi disclose Directors of the Companies Awarded Tax Waiver
- Agriculture CS Mithika Linturi disclosed that from the total amount, KSh 13.2 billion was with respect to rice and KSh 3.3 billion maize
- The CS clarified the government forewent the revenue when he appeared before the Departmental Committee on Agriculture chaired by Tigania East MP John Mutunga
Agriculture Cabinet Secretary Mithika Linturi on Tuesday 20th November, disclosed that government lost Sh16.5 billion between January and September, 156,957 tonnes of maize valued at KSh 6.6 billion were imported
The government missed out on revenues amounting to Sh16.5 billion between January and September this year following its decision to allow the duty-free importation of sugar, maize and rice, MPs heard yesterday.
Agriculture Cabinet Secretary Mithika Linturi told the legislators that of the money Sh3.3 billion was in respect to maize importation, Sh13.2 billion was for rice but failed to disclose the amounts lost in the importation of sugar.
“Honourable Members, it is worth noting that there was no revenue lost but it was foregone to safeguard Kenyans. The foregone revenue is the percentage of duty normally charged on commodities delivered at 50 per cent on maize and 35 per cent or $200 per tonne whichever is more on rice.” he said
Appearing before the Departmental Committee on Agriculture chaired by Tigania East MP John Mutunga, Linturi told MPs that a total of 163,827 tonnes of sugar from Non-Comesa countries landed in Kenya between January and September.
He also revealed that a total of 156,957 tonnes of maize valued at Sh6.6 billion was imported between January and September while 707,107 tonnes of rice worth Sh37.6 billion was shipped into the country during the same period.
The move follows the government’s decision to allow traders a six-month duty-free importation window to bring into the country 1.1 million metric tons of maize and 1.1 million metric tons of rice.
National Assembly Committee on Agriculture and Livestock Production Chaired by Tigania West MP Dr John Mutunga, the committee pinned Linturi over the exemptions wanting to know how much government lost on revenues if the tax were applied
MPs, Gabriel Kagombe [Gatundu South] Jared Okello [Nyando] Peter Salasya [Mumias East] demanded the CS to disclose CR 12 for the public to know the owners of the said companies which were awarded tender to import the said products on duty free
Particularly, Kangombe said that, it’s not surprising to find out that the companies awarded the said multibillion tender are all owned by one individual or politically connected power brokers
“In our findings, there’s a company called cyber security inch, how could the security company be given tender to import sugar and maize, are we really in a governed system where the principles of governance should apply? MP Kangombe agitately asked the CS who failed to respond.
Salasya, demanded to know how much maize governement purchased from western region’s last year’s production, and; if this year’s, before going abroad to import the same produce while they’d not exhausted locally
“We hear these stories that government has imported maize, sugar; could the CS tell us how much metric tonnes bought from western region? Chair, we are in another season and farmers in western have a lot of maize in their stores, how much is government buying pr planing to buy from our farmers? Salasya requested.
Konoin Member of Parliament Brighton Yegon also took issue with Mr Linturi, wanting to know why procurement laws were overlooked, where the CS said that the country was falling short of food supply in the market and thus applied emergency procurement methods to avert possible dangers
Defending the accusations, Linturi told the committee that directors of the companies who were awarded the said tenders can be obtained from the registrar of societies even when he prepares to submit their names in future
He particularly singled out Kagombe’s question, by stating that it was meant to taint the system whereas they have worked hard to bring the cost of basic commodities down including maize floor and sugar
Kagombe had demanded to know by how much sugar price reduced and maize floor having exempted those who imported on free duty denying the country another millions for revenues collected from the imported goods
Government had issued tax waivers on importation of 1.4 million metric tonnes of maize, 1.1 million metric tonnes of rice and 280,000 metric tonnes of sugar.
On June 16, Mithika told Senate plenary that 68 companies had imported 520,426 metric tonnes of white milled rice while 13 companies had imported 234,981 metric tonnes of white maize.
However, Mithika told the committee that the imported products have only hit into the country about 163, 878 metric tonnes against the total consumption of over 987,000MT
Even as the CS told the House that the Agriculture Ministry officials held a meeting with pre-qualified importers of maize and rice on April 25 to review and get an update on the status of importation of the commodities where they raised challenges they were facing, the committee demanded to know the deliberate exclusion of Agriculture Food Authority’s input in the whole process