Kenyan cement companies risk losing licences for failing to pay royalties

12 February 2019

firms that fail to remit royalties will lose their operating licences if
recommendations of an audit report are adopted by the mining ministry.

A task
force report has recommended that granting of licences be tied to payment of
royalties or a cement levy.

The team
also wants payment records to be used as one of the licensing conditions.

findings of the audit on revenue remittance indicate that most cement factories
and others such as Central Glass Industries have applied either for mining
licences or permits in accordance with the Mining Act 2016.

enhance royalty or revenue collection, we recommend that payment of a royalty
and cement levy should be one of the performance conditions,” the report, whose
team leaders were Fred Wandera and Gregory Kituku states.

If the
recommendations are implemented, three struggling cement makers, which owe the
ministry Sh198.4 million in unpaid levies for the year to June 2016 will find
it hard to renew their licences or permits.

Athi River Mining has arrears totalling Sh96.5 million while State-owned East African Portland Cement Company owes the ministry Sh68.3 million. Savannah Cement has a balance of Sh20 million that is due to the State department.

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