KRA threatens to auction Twiga foods for tax arrears: Twiga Foods, Bamburi Cement, and Honda Motorcycles Kenya are among the companies that could lose imports in KRA auctions to collect unpaid duties.
According to KRA, 5,130 boxes of imported onions from Twiga Foods are among these products, while Bamburi has yet to clear 29 containers of laterite, a mineral used in clinker production.
Tax officials told the companies they had 30 days to clear the product and pay any overdue taxes.
Chai Trading and Kajiado County will lose two ambulances and a Ford, both of which are on sale.
“Interested buyers can view the goods at the ICDE bonded warehouse during office hours on June 24, 2022, and June 27, 2022,” the statement said.
KRA regularly auctions items that have survived in their facilities for a variety of reasons. Among other things, because owners do not pay taxes or declare their goods incorrectly.
Just a few days ago, Twiga Foods invested Sh1 billion to create a new subsidiary called Twiga Fresh.
The new subsidiary focuses on modern and commercial agriculture, providing lower cost, better quality, and safer food to informal retailers and urban consumers. Significant cost reduction by investing $10 million ($1 billion in onions, tomatoes, and watermelons. Investing in Kenya will make it one of the largest single horticultural companies in Africa with a focus on the domestic market.
In recent years, Twiga has worked to address the rising cost of food in urban areas. Food accounts for nearly 60 percent of household spending in major African cities.
Recent months have been particularly difficult for retailers and consumers, as disposable incomes have been hit hard by rising commodity inflation triggered by the COVID-19 pandemic and the war in Ukraine.
In addition, Africa’s limited investment in the productivity revolution and modernization of food production has led to a surge in imports of staple foods, making food security an increasingly elusive goal.
