Deputy President Rigathi Gachagua has reiterated that the administration of President William Ruto will not force firms to close due to tax rows with the Kenya Revenue Authority (KRA).
Speaking on Friday, October 28, 2022, at the Kenya Association Of Manufacturers, at Mövenpick, DP Gachagua urged for dialogue with investors, saying that it is essential to development.
The DP referenced the case of business mogul Humphrey Kariuki’s distillery, which was closed down by the agency, terming the decision as foolish.
“African Distillers factory owned by Humphrey Kariuki was closed while it was paying Ksh. 50M every month in terms of tax, and for 3 years we have lost Ksh.1.8 B, money that we need in this country. That was a foolish decision and that will never happen in this administration.” the DP said.
Business tycoon Humphrey Kariuki was sought after by Kenyan authorities on allegations of evading approximately Ksh.17biliion in taxes and bringing tainted ethanol into the country, resulting in the closure of the African distiller.
Humphrey Kariuki, 62, is the founder of the Janus Continental Group, a conglomerate that owns The Hub, one of Nairobi’s premier shopping centers, Africa Spirits, a major producer of alcoholic beverages, Dalbit Petroleum, one of the continent’s largest oil distributors, and Great Lakes Africa Energy, a company based in the United Kingdom that develops and manages power projects in Southern Africa.
While encouraging Kenyans to diligently pay their taxes, the deputy president encouraged the tax agency to collect dues owed dignifiedly.
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“For a cow to produce milk, you have to give it hay. Europeans go a step further, they play country music to cows to produce milk. We have told them to look after taxpayers the way you look after a good dairy cow.” he added.
Gachagua also addressed the food crisis in the country, stating that the only way to handle the issue is by bringing cultivated land under irrigation.
“we will bring cultivated land under irrigation, we must no longer rely on rain-fed agriculture due to climate change. We have a clear strategy for revolutionizing agriculture, the next Kenya billionaires will come from the sector.”
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“An estimated 4. 3M Kenyans are food insecure, among the affected are 900,000 children, 120,000 expectant women, and lactating mothers who require urgent nutritional support. The dire situation we are in calls for robust, sustainable, and long-lasting solutions.”
“We need to enhance value addition for agricultural produce in the country and increase our focus on more sustainable projects with long-term benefits to overcome famine and drought”
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