Fuel supply sorted
Jan 13, 2006
THE fuel supply problem that dogged Uganda last year has been sorted out between the Government and the Kenyan tax authorities.
By Emmy Olaki
THE fuel supply problem that dogged Uganda last year has been sorted out between the Government and the Kenyan tax authorities.
Kabagambe Kaliisa, the energy ministry permanent secretary, said on Thursday that the local oil companies will load products from Nakuru Oil Depot.
This is now possible because the Kenya Revenue Authority (KRA) has completed the configuration of the Simba 2005 System at Nakuru.
Simba 2005 is the new computer system introduced by KRA to plug tax evasion and revenue loss.
The system created a backlog at the supply points, which caused supply shortages in Uganda due to delays.
“Nakuru has now been opened up. All Ugandan companies can now load from Nakuru which is nearer.
“This is in addition to Kisumu, Eldoret and Mombasa.
“With these measures, we hope the supply situation will improve,†Kaliisa said.
“The energy ministry calls upon oil importers and marketers to take note of this development and begin loading products from Nakuru,†he said.â€
Kaliisa said KRA was also working to configure the Simba 2005 facility at the Nairobi depot to make to handle export transactions.
“KRA hopes this work will be completed before the end of January 2006,†he said.
Kaliisa said KRA had started processing tax refunds for the Ugandan companies.
“Ugandan companies have been paying customs dues in Kenya, and also in Uganda, thereby reducing capital available for them to trade. Companies which have made such payments to KRA, should lodge their claims for refunds, with supporting documents,†he said.
Kaliisa said the KRA now accepts bank guarantees and bonds instead of cash payment against tax liabilities for products in transit, as it had been the previous year.
He, however, said this would not mean a reduction in fuel prices, as prices were not only determined by supply problems.
THE fuel supply problem that dogged Uganda last year has been sorted out between the Government and the Kenyan tax authorities.
Kabagambe Kaliisa, the energy ministry permanent secretary, said on Thursday that the local oil companies will load products from Nakuru Oil Depot.
This is now possible because the Kenya Revenue Authority (KRA) has completed the configuration of the Simba 2005 System at Nakuru.
Simba 2005 is the new computer system introduced by KRA to plug tax evasion and revenue loss.
The system created a backlog at the supply points, which caused supply shortages in Uganda due to delays.
“Nakuru has now been opened up. All Ugandan companies can now load from Nakuru which is nearer.
“This is in addition to Kisumu, Eldoret and Mombasa.
“With these measures, we hope the supply situation will improve,†Kaliisa said.
“The energy ministry calls upon oil importers and marketers to take note of this development and begin loading products from Nakuru,†he said.â€
Kaliisa said KRA was also working to configure the Simba 2005 facility at the Nairobi depot to make to handle export transactions.
“KRA hopes this work will be completed before the end of January 2006,†he said.
Kaliisa said KRA had started processing tax refunds for the Ugandan companies.
“Ugandan companies have been paying customs dues in Kenya, and also in Uganda, thereby reducing capital available for them to trade. Companies which have made such payments to KRA, should lodge their claims for refunds, with supporting documents,†he said.
Kaliisa said the KRA now accepts bank guarantees and bonds instead of cash payment against tax liabilities for products in transit, as it had been the previous year.
He, however, said this would not mean a reduction in fuel prices, as prices were not only determined by supply problems.