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Toxic sugar: MPs finger Kebs, AFA and Nema for negligence

Sugar

Brown sugar. The said bad sugar was found to have contained traces of copper.

Photo credit: File | Nation Media Group

What you need to know:

  • Vinepack was given a go-ahead by KRA to convert it to ethanol for industrial use and not for human consumption.
  • The sugar had been stored at the Mitchell Cotts container freight station after KEBS had found it to be unfit for human consumption.
  • The committee now wants the Inspector-General to investigate KRA officials who were responsible for the whole process leading to conversion of the condemned sugar.

A House committee has accused three regulatory bodies of negligence in the release of condemned sugar that found its way into the Kenyan market in 2023.

In a report tabled in the National Assembly, the committee on trade, industry and cooperatives accused the Kenya Bureau of Standards, National Environment Management Authority (Nema), and Agriculture and Food Authority (AFA) of allowing the bad sugar into the market without due care.

“Considering that the obligation and duties of the Multi-Agency Team (MAT) was to the final conclusion of the process of distillation, the committee finds that the whole team was negligent in discharging of their duties and as a result of the negligence, the sugar was lost,” reads the report.

“The committee finds the three institutions, Kebs, Nema and AFA as the most responsible as they had a major supervisory role to the final distillation process,” adds the report.

The sugar, which is said to have contained traces of copper, arrived at the Port of Mombasa in 2018 but was condemned by the Kenya Bureau of Standards and declared not fit for human consumption.

KRA's role

The committee questioned how KRA awarded Vinepack Ltd the tender to convert the sugar into ethanol yet there was no proof that  the company was licensed by the sugar directorate.

Vinepack was given the go-ahead by KRA to convert the sweetener into ethanol for industrial use and not for human consumption.

The report accused KRA of failing to invite bids for conversion of the condemned sugar into ethanol, and that the one that was put up by the taxman lacked timelines for submissions, which is against public procurement laws.

“The committee, therefore, observed that the process leading to the release of condemned sugar to Vinepack Ltd was illegal and irregular and the due process was not followed because the Kenya Revenue Authority did not follow the laid down procurement process leading to award of tender to a company which was not licensed to deliver services procured,” reads the report.

The 20,000 bags of sugar were shipped from Zimbabwe to Mombasa on June 30, 2018, but mysteriously disappeared from Vinepack Ltd warehouse in Thika.

Failed standards

The sugar had been rejected by Kebs after failing the standards, including a non-labelling date of manufacture of the sweetener.

The consignment was imported by two companies namely, Merako Investment (K) Ltd, with a bill of lading MSCUB1175403, and Sirocco Investments Ltd (K),  bill of lading MSCU1175411.

The sugar was stored at the Mitchell Cotts container freight station after KEBS had found it to be unfit for human consumption.

Upon being condemned, the sugar became prohibited under the control of the commissioner of customs and border control in accordance with section 217 of East Africa Community Customs Management Act, 2004.

The condemned sugar was to be converted into industrial ethanol through the process of distillation, a business deal that KRA granted to Vinepack Ltd.

A multi-agency team was then formed to deliberate and recommend how the sugar would be released and transported to Vinepack Ltd.

Thika go-down

The condemned sugar was then transported and offloaded to Kings Commodities do-down Thika where it later disappeared only to find its way into shops.

 Unscrupulous retailers repackaged the condemned sugar into one and two-kilogramme packets and sold them to unsuspecting consumers.

The committee noted that although there is a legal framework for the processes leading to goods being condemned, the law is silent on the timelines.

“As a result, most of the commodities take long before they are destroyed or disposed of upon declaration by the Kenya Bureau of Standards of their non-conformity,” reads the report.

The committee now wants the Inspector-General of Police to investigate KRA officials who were responsible for the whole process leading to the conversion of the condemned sugar.

Further, the committee also called on the Ethics and Anti-Corruption Commission (EACC) to investigate the procurement process that led to the award of the tender to Vinepack Ltd.