The Kenya Sugar Board (KSB) is under scrutiny after it emerged that a permit it issued to allow the importation of 27,000 metric tonnes of raw sugar may not have been backed by provisions of the Sugar Act.
The National Assembly Departmental Committee on Trade, Industry and Cooperatives, probing the controversial importation by Mombasa Sugar Limited, questioned the legal basis of the approval, arguing that the law does not provide for the issuance of such a licence.
The committee, chaired by Ikolomani MP Bernard Shinali, raised the concerns while questioning officials from the Kenya Sugar Board over the circumstances under which the import permit was granted.
Appearing before the committee, the board, represented by Director of Compliance Kemboi, was asked to explain the legal authority under which the licence was issued.
Members argued that the Sugar Act does not contain a provision allowing the importation of raw sugar under the permit issued to the company.
The legislators also raised concerns over tax waivers estimated at Sh2.9 billion that the imported sugar received. The amount had earlier been disclosed by the management of Mombasa Sugar Limited, and the committee sought clarity on whether the waivers and the entire importation process complied with the law.
The Kenya Sugar Board defended the decision, saying the sugar was imported only for industrial processing and was not intended for direct consumption.
Officials told the committee that measures had been put in place to ensure the raw sugar did not enter the market.
The committee further questioned the legality of the process based on the composition of the Kenya Sugar Board at the time the import permit was issued.
Members noted that the authority to issue such licences is given to the board and not its management. They said that although the law allows the board to delegate some duties to management, there was no properly constituted board at the time to make such a delegation.
This, the legislators said, raised questions over whether the approval of the import permit was valid.
The committee also criticised several government agencies for failing to appear before it despite being invited to provide information on the matter.
The agencies that did not attend included the State Departments for Trade, Industry and Agriculture, as well as the National Treasury.
Members also rejected requests by the Commissioner General of the Kenya Revenue Authority (KRA) and the Managing Director of the Kenya Bureau of Standards to send representatives on their behalf.
“We are dealing with a heavy matter of public interest, breach of law, public safety and revenue loss. This matter cannot be delegated,” Shinali said.
The Committee is expected to continue with the probe to establish whether the issuance of the raw sugar import licence, the tax waivers granted and the approval process complied with the law.
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