“It is against this background that I request the Committee to inquire into the operations of the Blue Nile Steel Rolling Mills Limited and present a report to the House, making relevant recommendations thereof,” Njuguna said.
But in his response submitted to the Delegated Legislation Committee, the PS denied any wrong saying the deal was structured with the existing regulations and laws including regional treaties.
The Committee is chaired by Ainabkoi MP Samuel Chepkonga.
“In the year 2018, the Government amended tax laws through the Finance Act, 2018 – Value Added Tax and Miscellaneous Fees and levies Act to provide tax incentives for Special Operating Framework Agreement with the Government,” Kiptoo said.
The PS also indicated that the Attorney General in 2023 okayed the deal after the ministry sought its legal opinion.
“The Attorney General advised that Blue Nile Rolling Mills Limited be exempted from the new taxes and levies that undermine implementation of the SOFA,” the PS said.
The PS however did not divulge the total value of tax exemptions, the government that has been granted to the Company so far and the amount at the end of the agreement.
According to Kiptoo, the ministry had not consulted the Kenya Revenue Authority (KRA) to ascertain the value of the tax exemptions.
“Actual total values of taxes, fees and levies including import duty that has been exempted so far will be provided later after consultation with Kenya Revenue Authority (KRA),” Kiptoo explained.
