Ngavament unfathomable terror madness on hasora manufacturers

[gout]

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The House's Finance and National Planning committee heard that KRA had failed to grant Yamaroku Limited, the makers of Koru Rum, licenses to operate its Sh7 million distillery.

Yu Yamakami, a Japanese investor, told the committee chaired by Molo MP Kuria Kimani that the distillery, which was set up in 2020, was yet to present Koru Rum in the market. Rum is a spirit made from sugarcane products such as molasses or fresh sugarcane juice (Agricole-style rum).

The Japanese investor, who intends to set up Kenya’s first sugarcane Rum premium product for local and foreign markets, said the firm estimates to rake in more than Sh75 million turnover in a year. She said Koru Rum can produce 15,000 litres of Rum annually.

A tonne of sugarcane goes for Sh4,500, but if the same is distilled into Rum, it will fetch Sh250,000.

She said the KRA requirements to comply with the provision of Excise Duty Licenses will cost the company Sh25 million, and that the taxman requires distillers to install authorised flow meters that can be remotely monitored, whose estimated cost is Sh15 million.

They are also required to install tank capacity gauges or sensors that can be remotely monitored, which is a technical challenge to small distillers, besides mounting CCTV cameras that cost about Sh500 million.

Ms Yu said KRA requires the installation of automatic bottle filling and automatic labelling machines which cost approximately Sh8 million. Labour, transport, and other costs are estimated at Sh2 million.

“We are yet to start production despite investing Sh7 million in the distillery which has been ready for the past two years. We only produced a few litres for testing by the Kenya Bureau of Standards which has cleared our products for mass production,” Ms Yu, a co-founder and director of Yamaroku Limited said.

“The problem we are facing to allow us to roll out our Koru Rum is licensing by KRA. The current legal framework was developed for large-scale distilleries and compounders. It is not suitable for Micro Craft Distillers (MCDs).”

https://www.businessdailyafrica.com/bd/economy/mps-turn-spotlight-on-kra-over-stalled-koru-alcohol-distillery--4653708

[Georgesoros]

This should go.
THey are afraid of cheaters at the expense of the economy.
THis is CRAP!!!

[hk]

The article has many distorted figures. CCTV cant cost 500m, flow meter is 1.5m not 15m . Filling and labeling machine for a company doing 15k litres annual is available for about 4m. But its true regulations and unnecessary requirements its the biggest impediment to industrialization. Alcohol regulations has led to 59% of alcohol consumed in kenya to be counterfeit. Its especially tough in the spirit industry. In any industry in kenya the key to survival is being informal until the necessary funds are accumulated to formalize.

[RV Pundit]

Indeed.

The article has many distorted figures. CCTV cant cost 500m, flow meter is 1.5m not 15m . Filling and labeling machine for a company doing 15k litres annual is available for about 4m. But its true regulations and unnecessary requirements its the biggest impediment to industrialization. Alcohol regulations has led to 59% of alcohol consumed in kenya to be counterfeit. Its especially tough in the spirit industry. In any industry in kenya the key to survival is being informal until the necessary funds are accumulated to formalize.

[lelewela]

This is how they kill small factories. Most probably they would have found a way for if only she new how to grease someone's hands!
 KRA should be local manufacturing friendly, bring in professionals (serious ones) who want the country to take off as a hub of small factories for East and Central Africa.

The House's Finance and National Planning committee heard that KRA had failed to grant Yamaroku Limited, the makers of Koru Rum, licenses to operate its Sh7 million distillery.

Yu Yamakami, a Japanese investor, told the committee chaired by Molo MP Kuria Kimani that the distillery, which was set up in 2020, was yet to present Koru Rum in the market. Rum is a spirit made from sugarcane products such as molasses or fresh sugarcane juice (Agricole-style rum).

The Japanese investor, who intends to set up Kenya’s first sugarcane Rum premium product for local and foreign markets, said the firm estimates to rake in more than Sh75 million turnover in a year. She said Koru Rum can produce 15,000 litres of Rum annually.

A tonne of sugarcane goes for Sh4,500, but if the same is distilled into Rum, it will fetch Sh250,000.

She said the KRA requirements to comply with the provision of Excise Duty Licenses will cost the company Sh25 million, and that the taxman requires distillers to install authorised flow meters that can be remotely monitored, whose estimated cost is Sh15 million.

They are also required to install tank capacity gauges or sensors that can be remotely monitored, which is a technical challenge to small distillers, besides mounting CCTV cameras that cost about Sh500 million.

Ms Yu said KRA requires the installation of automatic bottle filling and automatic labelling machines which cost approximately Sh8 million. Labour, transport, and other costs are estimated at Sh2 million.

“We are yet to start production despite investing Sh7 million in the distillery which has been ready for the past two years. We only produced a few litres for testing by the Kenya Bureau of Standards which has cleared our products for mass production,” Ms Yu, a co-founder and director of Yamaroku Limited said.

“The problem we are facing to allow us to roll out our Koru Rum is licensing by KRA. The current legal framework was developed for large-scale distilleries and compounders. It is not suitable for Micro Craft Distillers (MCDs).”

https://www.businessdailyafrica.com/bd/economy/mps-turn-spotlight-on-kra-over-stalled-koru-alcohol-distillery--4653708

[Kadudu]

KRA has lost it. Instead of encouraging investors to go into manufacturing, KRA is busy terrorising potential investors.

This is how they kill small factories. Most probably they would have found a way for if only she new how to grease someone's hands!
 KRA should be local manufacturing friendly, bring in professionals (serious ones) who want the country to take off as a hub of small factories for East and Central Africa.

[Georgesoros]

This is how they kill small factories. Most probably they would have found a way for if only she new how to grease someone's hands!
 KRA should be local manufacturing friendly, bring in professionals (serious ones) who want the country to take off as a hub of small factories for East and Central Africa.

The House's Finance and National Planning committee heard that KRA had failed to grant Yamaroku Limited, the makers of Koru Rum, licenses to operate its Sh7 million distillery.

Yu Yamakami, a Japanese investor, told the committee chaired by Molo MP Kuria Kimani that the distillery, which was set up in 2020, was yet to present Koru Rum in the market. Rum is a spirit made from sugarcane products such as molasses or fresh sugarcane juice (Agricole-style rum).

The Japanese investor, who intends to set up Kenya’s first sugarcane Rum premium product for local and foreign markets, said the firm estimates to rake in more than Sh75 million turnover in a year. She said Koru Rum can produce 15,000 litres of Rum annually.

A tonne of sugarcane goes for Sh4,500, but if the same is distilled into Rum, it will fetch Sh250,000.

She said the KRA requirements to comply with the provision of Excise Duty Licenses will cost the company Sh25 million, and that the taxman requires distillers to install authorised flow meters that can be remotely monitored, whose estimated cost is Sh15 million.

They are also required to install tank capacity gauges or sensors that can be remotely monitored, which is a technical challenge to small distillers, besides mounting CCTV cameras that cost about Sh500 million.

Ms Yu said KRA requires the installation of automatic bottle filling and automatic labelling machines which cost approximately Sh8 million. Labour, transport, and other costs are estimated at Sh2 million.

“We are yet to start production despite investing Sh7 million in the distillery which has been ready for the past two years. We only produced a few litres for testing by the Kenya Bureau of Standards which has cleared our products for mass production,” Ms Yu, a co-founder and director of Yamaroku Limited said.

“The problem we are facing to allow us to roll out our Koru Rum is licensing by KRA. The current legal framework was developed for large-scale distilleries and compounders. It is not suitable for Micro Craft Distillers (MCDs).”

https://www.businessdailyafrica.com/bd/economy/mps-turn-spotlight-on-kra-over-stalled-koru-alcohol-distillery--4653708

I completely agree with you.
They’ll still collect taxes even if there is cheating, so stop this nonsense and adopt job creating policies