KRA Addresses British Army Training Unit’s Tax Compliance in Kenya
The National Assembly Committee on Defence, Intelligence, and Foreign Relations convened today to scrutinize the activities of the British Army Training Unit in Kenya (BATUK), focusing on its tax compliance and customs regulations.
Dr. Lillian Nyawanda, Commissioner for Customs and Border Control at the Kenya Revenue Authority (KRA), testified before the committee, chaired by Hon. Nelson Koech. Key topics included the tax registration status of BATUK and individual soldiers’ motor vehicles.
Dr. Nyawanda clarified that BATUK, recognized as a privileged institution under the East African Community Customs Management Act of 2004, has imported 223 vehicles since 2019 under exemption regulations. These vehicles comprise 49 for transporting goods, 154 for personnel transport, and 20 for special purposes. However, questions were raised about the compliance of vehicles owned by individual soldiers, which KRA referred to the National Transport and Safety Authority (NTSA).
The committee also highlighted that while BATUK has been diligent in filing Pay As You Earn (PAYE) tax returns for its 604 employees, it has not submitted corporate income tax returns, raising concerns about potential outstanding tax liabilities.
Moreover, legislators expressed apprehension regarding the presence of contraband goods within BATUK facilities, citing allegations of smuggled mobile phone accessories and AFCO cigarettes. In response, Dr. Nyawanda noted that KRA has implemented advanced surveillance measures, including scanners and CCTV, to monitor activities at ports and airports. However, she acknowledged that BATUK’s restricted military zones pose challenges to KRA’s oversight.
In light of public hearings in Laikipia, Isiolo, and Samburu Counties, where residents claimed smuggling activities linked to BATUK, Dr. Nyawanda reported no formal complaints had been lodged but assured the committee of KRA’s collaboration with the Ministry of Defence, Immigration, and Interpol to uphold customs compliance.
The committee concluded that KRA has exercised due diligence in its oversight of BATUK’s activities, emphasizing the importance of maintaining transparency and adherence to local laws. The inquiry continues as lawmakers seek to ensure that all foreign military units operating in Kenya comply with national regulations.
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