The Managing Director of Kenya Ports Authority (KPA) Captain William Ruto, faced questioning from the National Assembly Public Investments Committee on Commercial Affairs and Energy. The session, led by Pokot-South MP David Pkosing, focused on allegations of undercharging revenue related to container storage.
Captain Ruto was specifically asked about the method used to waive an estimated Ksh.242 million tax on goods stored at the port from 2019 to 2020.
During the hearing, he explained that the process of validating tax waivers involves written requests and is documented in a customer notice outlining waiver handling guidelines. He clarified that fees granted to clients also include storage charges.
The parliamentary committee further demanded a copy of the waiver policy from KPA’s management. The Committee also addressed concerns raised by the Auditor General.
These concerns included KPA’s inability to fully account for Ksh92.6 million in license fees by the end of the fiscal year 2019/2020. The Committee also probed claims of excessive payments for overtime allowances and unclaimed value-added input tax.
It is however worth noting that Captain William Ruto assumed the MD position in March 2023, succeeding John Mwangemi, who previously held the role in an acting capacity. Although scrutinized for expenditures, Ruto was not in charge of the state agency during the period under question.
Among the queries from MPs were concerns about KPA paying overtime allowances totaling Ksh214.6 million to 1,337 employees who worked eight-hour days. Additionally, the committee sought clarification on establishment expenses amounting to Ksh1.9 billion, which the Auditor General questioned due to lack of supporting documents.
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The committee also raised questions about the accuracy of waivers totaling Ksh242 million and KPA’s inability to account for Ksh6.1 million in storage containers’ revenue.
Committee Chairperson MP Pkosing pressed Captain Ruto to provide the authority’s policy document on waivers to verify the due diligence process for awarding the waivers in question. Pkosing stressed that progress hinged on obtaining this document.
The committee also scrutinized the Auditor General’s findings that KPA couldn’t fully account for Ksh92.6 million in license fees for the financial year 2019/2020.
In response, Captain Ruto explained that the validation process involves submitting written requests, which are outlined in a Customer Notice highlighting the waiver handling procedure. Pkosing directed the Auditor General’s Office to provide documentation on the potential losses stemming from irregular payments within two weeks.
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Additionally, the committee instructed the Auditor General’s office to detail the actions taken by KPA to address the issue. The session emphasized the committee’s commitment to thorough inquiry into KPA’s financial matters.
