Kenyan cement companies risk losing licences for failing to pay royalties

Cement firms that fail to remit royalties will lose their operating licences if recommendations of an audit report are adopted by the mining ministry.

A task force report has recommended that granting of licences be tied to payment of royalties or a cement levy.

The team also wants payment records to be used as one of the licensing conditions.

The findings of the audit on revenue remittance indicate that most cement factories and others such as Central Glass Industries have applied either for mining licences or permits in accordance with the Mining Act 2016.

“To enhance royalty or revenue collection, we recommend that payment of a royalty and cement levy should be one of the performance conditions,” the report, whose team leaders were Fred Wandera and Gregory Kituku states.

If the recommendations are implemented, three struggling cement makers, which owe the ministry Sh198.4 million in unpaid levies for the year to June 2016 will find it hard to renew their licences or permits.

Athi River Mining has arrears totalling Sh96.5 million while State-owned East African Portland Cement Company owes the ministry Sh68.3 million. Savannah Cement has a balance of Sh20 million that is due to the State department.https://www.businessdailyafrica.com/economy/Cement-companies-risk-losing-licences/3946234-4975788-13picn2/index.html