You will soon pay more for beverages, water as Swiss firm rakes in billions
SEE ALSO :Family faces Sh85m tax cheat chargesAccording to Kenya Association of Manufacturers Chief Executive officer Ismael Kibet, an estimated 30 million bottles of soft beverages and bottled water are produced daily. “The manufacturers will have to pass the cost to consumers for the Sh1.50 and the additional one of putting the lines because the KRA refused to shoulder the burden,” said Mr Kibet. During a presentation to the National Assembly’s Public Investment committee (PIC), KRA argued that they projected that ensuring higher compliance by the use of the stamps supplied by Sipca would yield Sh3.6 billion a year, or Sh18 billion for the five year contract term. However, going by the calculations of 30 million bottled water, juices, energy drinks, soda and other non-alcoholic beverages units per day according to the association of Suppliers, Sicpa will make Sh1.3 billion per month of Sh81 billion at the end of the five year term. Notably, this money won’t go to KRA. Simple mathematics therefore indicate that KRA will have committed Sh4 of taxpayers money to chase for Sh1 from Kenyans.
SEE ALSO :Who will dare probe DIG Edward Mbugua?The implementation of the of EGMS has been dodged by controversy that has seen it become subject of court cases and a parliamentary committee probe. In July last year, National Assembly Speaker Justin Muturi ruled that effecting the new system without regulations being tabled and approved by the House is null and void. “If something that has force of law is being implemented without passing through this House, then it is null and void,” said the Speaker. There have also been questions at to how a Swiss firm won the lucrative tender and its local agents. Earlier, Public Procurement Oversight Authority Director General Maurice Juma had told Parliamentary Investment Committee then chaired by Eldas MP Adan Keynan that the Swiss firm was awarded the EGMS contract worth Sh17.8 billion on May 9, 2010, long before the company was registered on May 9, 2013. SICPA was initially disqualified from the tender because it did not meet the requirements.
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