Authorities in Kenya and Uganda have filed tax claims against Bamburi Cement totaling Sh1.2 billion, but the company maintains it has taken means to avoid paying the amounts.
According to Bamburi’s most recent annual report, a letter given on February 23, 2022, by Kenya’s Treasury Cabinet Secretary rejected the company’s request for a remission of penalties and interest totaling Sh288 million.
The fines resulted from a tax assessment that was made between 2007 and 2011.
Additionally, the business has received a demand for Sh956 million in taxes in Uganda, where it conducts business through its subsidiary Hima Cement Limited.
The cement manufacturer said it settled a tax assessment between 2007 and 2011 with the Kenya Revenue Authority in 2018 based on an alternative dispute resolution system.
“The company will continue to engage the Cabinet Secretary for National Treasury and Planning for a review of the decision to decline our penalties and interest waiver application,” said Bamburi.
In Uganda, where it operates through its subsidiary Hima Cement Limited, the company has also received a tax claim worth Sh956 million.
The cement producer claimed that it settled with the Kenya Revenue Authority in 2018 based on an alternative dispute resolution framework for a tax assessment between 2007 and 2011, and that it paid Sh332 million in principal tax in connection to corporation tax. Following the payments, it filed for and was granted an interest in remission.