40,000 tonnes of sugar imported by Darasa Investment Limited was on Friday shipped back to Brazil after failing to meet Kenya Bureau of Standards (Kebs) specifications, officials have said.
The verification process involved a multi-agency team from Kenya Revenue Authority, Kenya Ports Authority, the Kenya Navy, National Intelligence Service, DCI Officers and the National Police Service.
The news were confirmed by KRA Customs and Boarder Control acting commissioner Kenneth Ochola.
In connection to the imported sugar, Darasa Ltd was to clear the Ksh2.5 billion tax and VAT arrears as per an out of court agreement with KRA.
The sugar was imported into the country on July 15, 2017 from Sabina Engineering Company at a cost of $21.2 million (Sh2.12 billion), but KRA held the consignment at the Mombasa Port on grounds that it was illegally imported.
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The sugar was aboard MV Anangel Sun, a vessel and measuring 250 by 43 metres. The vessel could not dock at the Mombasa port because it could not be accommodated due to its size, raising eyebrows how the company decided to use the vessel.
Additionally, documents indicated that the sugar was produced in August 2017 and September 2017, meaning that the sugar could not have been imported in July as implied.
It was due to these anomalies that KRA asked them to pay Ksh2.6 billion duty and the company went to court seeking to overturn KRA’s demand through a judicial review.
Unable to obtain court’s favour, Darasa went for an out of court settlement, in which they will pay the tax. Also, the consignment was shipped back today at around 3.30 pm.
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