New audit review indicts Kenya Revenue Authority over releasing expired sugar

The Kenya Revenue Authority (KRA) has come under scrutiny following a new audit review by Auditor General Nancy Gathungu, which revealed the irregular release of expired sugar into the market, reported The Star.

The audit, covering KRA’s activities as of June 30, 2023, holds the tax authority accountable for the missing goods, which were under its custody. “No explanation was provided by management for releasing expired goods to the market instead of destroying the same,” Gathungu stated.

The audit report highlighted that KRA violated legal requirements mandating the destruction of goods deemed dangerous or injurious to health. “In the circumstances, the management was in breach of the law,” the report noted.

Under the Kenya Bureau of Standards Act, Cap 496, inspectors have the authority to order the destruction of such hazardous goods.

As per media report, it is emerging that KRA released two sets of condemned sugar, the first being 240 bags of 50kg that were intercepted. Gathungu said her review established that while only 18 bags were sent to the Kebs as expired, the entire consignment was later found to be past its due date. The sugar was indicated as manufactured in March 2017 and had an expiry date of February 2020, but was released a month later, on March 25, 2020.

A second batch included 2,700 bags of sugar, each weighing 50 kg, stored in a customs warehouse pending further investigations. While 158 bags were dispatched to Nairobi for destruction in January 2020, the remaining 2,542 bags went missing from the warehouse. “Their whereabouts were not explained,” Gathungu reported, emphasizing KRA’s legal responsibility for the goods.

“This was contrary to Section 26 (2) of the East African Community Customs Management Act, 2004, which states that the owner of the transit shed shall be responsible and accountable for the goods,” the auditor said.


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