KRA to Auction KPLC Transformers Over Tax Delays

The Kenya Revenue Authority (KRA) is set to auction the Kenya Power and Lighting Company’s (KPLC) transformers after a 30 day period of lapses.

Through an announcement in the Kenya Gazette, a notice was put out for KPLC to clear out the transformers that were shipped into the country seven years ago within 30 days or risk them being sold off.  This is following its failure to clear taxes for the import and storage fees of the transformers.

“Unless the under-mentioned goods are entered and removed from the Customs Warehouse within thirty (30) days from the date of this notice, they will be sold by public auction on August 12, 2021,” said KRA In the gazette.

The auction by KRA comes at a time when the taxman is cracking down on tax evaders and following up on uncollected tax in order to meet the set budget for the financial year starting July.

KPLC currently has an aging transmission network that has been blamed for increased power outages. In the financial year 2020, the power company recorded a loss after a tax of Ksh.0.94 billion despite receiving a tax credit of Ksh.6.1 billion issued by the government.