KRA Refunds Ksh.255 Million in VAT to Titanium Firm

The Kenya Revenue Authority (KRA) has refunded a further Ksh.254.9 million in VAT claims to Kwale based titanium firm Base.

The amount in arrears for the construction of and operation of the Kwale project brings down the tax man’s debt to the firm to Ksh.2.1 billion ($19.5 million) at the end of the year’s first quarter.

The payments will enhance the liquidity of the firm which has fully drawn on its Ksh.8 billion ($75 million) revolving credit facility to provide flexibility under the ongoing COVID-19 pandemic.

Base Titanium’s Kwale operations have continued uninterrupted, mainly because of sustained consumer demand which saw its production in three months to March soar to 138,661 tons from 119,687 tons in December.

Similarly, sales were sustained during the quarter in spite of instability from the firm’s main Chinese market to stand at 120,476 tons from 127,328 tons in the last quarter.

“Base is closely monitoring the impact COVID-19 is having on the demand from its customers. So far, all product orders have been made in line with planning and we have seen no material impact on the demand side,” noted the firm in its quarterly operations update Thursday.

The base’s production forecast for 2020 remains unchanged but is subject to uncertainties related to the coronavirus pandemic.

“Due to the inherent uncertainties associated with the COVID19 pandemic, a halt to, or curtailment of, operations at some point in the future is possible.  In such an event, the company may update or withdraw its FY20 production guidance, as appropriate in the circumstances,” added the firm.

The firm remains keen on the extensional exploration of deposits subject to anticipated approvals from the Ministry of Mining and Petroleum.