Closure looms for several manufacturers over tax licences

Politics and policy

Spectre International. The company associated with Cord leader Raila Odinga is among those threatened with closure by KRA over tax licences. Photo/FILE 

By KIARIE NJOROGE

In Summary

• Spectre International which is associated with opposition leader Raila Odinga manufactures ethanol.
• The Authority Thursday warned that it would move against manufacturers and importers of excisable goods who do not have licences.
• Excisable products are: beer, opaque beer, potable spirits and wines, ethyl alcohol, tobacco and tobacco products, polythene bags, juices and other non-alcoholic beverages, soft drinks (sodas), cosmetics and bottled water.

Mastermind Tobacco, Spectre International, Pepsi soda bottlers SBC Kenya and Sierra beer brand maker Ozzbecco Ltd have failed to secure excise tax licences putting them in danger of being shut down by the Kenya Revenue Authority (KRA).

KRA released a list of 165 local manufacturers and 133 importers who are now allowed to deal in excisable goods even as it said that an operation against those unlicensed is imminent.

“At KRA, we have remained lenient and provided a platform for facilitation for all manufacturers and importers of excisable goods and we are now set to undertake the applicable enforcement actions to ensure full compliance,” Alice Owuor, the KRA Domestic Taxes Commissioner said.

READ: KRA stopped from closing Keroche

Mumias Sugar, Softa Bottling Company and beauty products manufacturer Flame Tree which had been missing in an earlier list last month have now been included.

Excisable products are: beer, opaque beer, potable spirits and wines, ethyl alcohol, tobacco and tobacco products, polythene bags, juices and other non-alcoholic beverages, soft drinks (sodas), cosmetics and bottled water.

RAILA ODINGA

Spectre International which is associated with opposition leader Raila Odinga manufactures ethanol.

SBC Kenya, the bottlers of Pepsi soda, who have previously said that they have a licence to manufacture were omitted from the list again. They were only listed as an importer.

The exclusion of Mastermind leaves BAT as the only player in tobacco manufacturing.

Keroche Breweries is missing from the list but the company has previously said that they have a court order barring KRA from interfering with their operations.

The brewer’s omission from the list stems from a Sh1 billion excise duty claim by KRA but which has been contested in court.

Retailers are likely to take the products of those who are not licensed off their shelves to avoid falling foul of the taxman.