Treasury, KRA taken to task over renewal of Sh160bn stamps deal

Treasury Cabinet Secretary Njuguna Ndung'u. [Boniface Okendo, Standard]

National Treasury and Kenya Revenue Authority (KRA) top officials were on Monday hard-pressed to explain if they will allow SICPA firm to continue running the Sh160 billion excise stamps deal after its tender comes to an end in July next year.

Treasury Cabinet Secretary Njuguna Ndung'u and KRA Commissioner Paul Matuku said that they will be guided by the law in ensuring that a new firm oversees the collection of duty through the Excisable Management System (EGMS).

"We are going to ensure that all the laws are followed in the matter to ensure that we get a qualified firm for the contract," said Prof Ndung'u.

Leader of Minority in the National Assembly Opiyo Wandayi alleged that billions of shillings are being siphoned through the EGMS where KRA targets to improve its collection of excise revenue through a track and trace solution.

According to Mr Wandayi, the tax collector has issued three different controversial contracts to a Swiss supplier known as SICPA Security Solutions SA between 2011 and 2015. The contracts have never been made public.

Wandayi had raised alarm over what he termed as a grand "Stamp Gate" scandal involving Sh160 billion at KRA.

"SICPA has a criminal record and has been sentenced to pay fines worth millions of shillings because of impropriety that borders on bribery," claimed Wandayi.

He added, "Treasury has on different occasions changed the regulations and in 2015, the contract between KRA and SICPA was cancelled after its legality was questioned."