London Distillers Kenya (LDK), a producer of alcoholic beverages, has been slammed by the Kenya Revenue Authority with a Sh332 million tax debt that the Treasury had waived during the administration of former President Uhuru Kenyatta.
The LDK received demand notifications from the taxman to pay excise duty that it had accrued from the sale of alcohol, according to information presented to the National Assembly’s Finance and Planning Committee.
The MPs are looking into how, during Mr. Kenyatta’s final time in power, the previous administration gave tax exemptions worth Sh620 billion to both domestic and foreign corporations.
The demand was made as a result of the former Treasury Cabinet Secretary Ukur Yatani revoking the clearance of a tax abandonment that had been granted to the LDK on January 20, 2022, according to LDK Chairman Mohan Galot.
Mr. Galot presented a letter from the Treasury Cabinet Secretary Njuguna Ndung’u withdrawing Mr. Yatani’s tax exemption, dated March 31, 2023.