𝐊𝐑𝐀 Officer Reveals Serious Irregularities in the Release of Condemned Sugar
Derrick Kago, a Kenya Revenue Authority (KRA) officer, has disclosed critical information regarding the unauthorized release of condemned sugar into the market. Speaking before the National Assembly – Trade, Industry and Cooperatives Committee chaired by Hon. James Gakuya (Embakasi North), Kago, who serves in the Customs Investigations Section, highlighted significant discrepancies in the handling of the case.
According to Kago, on April 20, 2023, his department received intelligence about a consignment of sugar traveling from Mombasa to Nairobi. However, there was a lack of clarity regarding the intended destination. Legislators deemed this as a breakdown in communication within the KRA team. The name of Ms. Faith Kiara, a KRA staff member, emerged prominently during the investigation.
Kago further revealed that on April 21, he and a colleague were instructed to inspect the sugar consignment in Thika. Upon arrival, they discovered Vinepack Industries unloading the sugar at a warehouse owned by Kings Commodities. Kago counted 20,064 bags of sugar and documented the evidence in his report.
On April 25, 2023 Kago’s team found that Vinepack Limited lacked a valid license and the capacity to convert the sugar into ethanol, as required. Vinepack had obtained a “no-objection” certificate from the Agriculture and Food Authority, and all this information was included in a report submitted to Ms. Faith Kiara.
It was revealed that the sugar had originated from Zimbabwe, a country that enjoyes 100% tax waiver since it is under COMESA. Kago stated the origin was clearly indicated on the sacks as from Zimbabwe. However, according to Kago, KRA had erroneously claimed it came from Mozambique, resulting in inappropriate tax assessments.
On April 28, Ms. Faith Kiara allegedly instructed Kago to deliver a letter of unconditional release to Vinepack Industries, a decision not communicated to the Commissioner. Kago complied but was concerned when a KRA Resident Officer at the warehouse failed to appear. He subsequently resealed the warehouse.
Kago asserted that Ms. Faith Kiara instructed him to report to the Directorate of Criminal Investigation headquarters on May 3, 2023. Kago described a joint operation with DCI officials to inspect the warehouse, only to discover that the sugar had disappeared. He noted that the warehouse gate had been freshly painted, a matter he presented before the investigative team.
Kago implored the Committee to thoroughly investigate the matter, as he had later been accused of stealing the sugar and is currently on suspension receiving half-pay. The Committee pledged to uncover the truth and will soon meet Ms. Faith Kiara, the owner of Kings Commodities and a person named Mohammed for further inquiry before presenting a comprehensive report on this concerning incident to the public.
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