A Senate oversight committee has queried the huge debt owed to Kajiado government in land rates and royalties by an investor in Lake Magadi.
The Senate’s Public Accounts and Investments Committee took Kajiado Governor Joseph Ole Lenku to task on Monday over why the county has not collected the money from the multinational.
Committee members led by chairman Ochillo Ayacko (Migori) and vice chairman Hargura Godana (Marsabit) expressed dismay at the continued non-remittance of land rates bills by Tata Chemicals Magadi Ltd.
The company near Lake Magadi is one of Africa's largest manufacturers of soda ash.
“We regrettably note the county government has been getting nothing yet the company is making huge profits from its commercial activities. This is a matter that must be addressed so that the people of Kajiado can benefit from their natural resources,” Godana said.
Taita Taveta Senator Johnes Mwaruma said the Tata Chemicals matter was a classic example of unfair treatment of communities living in mining areas. He said such cases were rampant in his home county.
The senators were responding to the 2019-20 report by the Auditor General which queried why Sh10.6 billion in land rates and royalties had not been collected. The amount was indicated in the receivables outstanding accounts.
Turkana Senator Imana Malachy said amount owed could go a long way in bridging the revenue gaps in the county to enhance services.
Governor Lenku, in his written response, tabled documents to show Tata Chemicals Magadi Ltd had not remitted its land rates for years. He said the total was Sh14 billion.
“We have made tremendous efforts to collect these rates. This dispute has been a subject of a court cases even after the National Government intervened through the Ministry of Petroleum," the governor said.
He said, "We shall not relent in fighting for the rights of Kajiado people."
Kajiado Senator Philip Mpaayei who attended the session said he had worked closely with the county government to ensure it improved its revenue collection.
Ayacko said the matter was not only a legal issue but also could require political intervention to unlock.
“We are ready to support the political process. It seems the matter is deeper and we cannot have multinationals failing to fulfil their tax obligations,” he said.
The company has said it is unable to pay the amount and has gone to court seeking relief.
(Edited by V. Graham)
