According to the Kenyan Wall Street, Base Titanium Limited has received 363 million Kenyan Shillings worth of accumulated Value Added Tax (VAT) from the Kenya Revenue Authority (KRA) for the financial year which ended in June 2019.
Base Titanium Limited which is a subsidiary of Australian and UK-listed resources company, Base Resources Limited, is located in Kwale County, 50 kilometres south of Mombasa, and operates Kenya’s largest mine.
The Since Base Titanium began mining titanium from its Kwale mines in 2013, the Kenya Revenue Authority (KRA) owes the company a Value Added Tax (VAT) refund of 2.5 billion Kenyan Shillings and as such, the 363 million Kenyan Shillings refund only covers 14.5% of the total debt owed to Base Titanium by the Kenya Revenue Authority (KRA).
The mine was awarded flagship project status under Kenya’s Vision 2030 national development blueprint.
The Kenyan government by law charges royalties at a rate of 2.5% of the export values. As a result, Kenya earned Kshs 1.5 billion royalties from Base Titanium in the year which ended in June 2019.
The Kwale mines also recorded a 13% increase in net profits to 4.96 billion Kenyan Shillings in the same period being reviewed.
The sales revenue from Kwale county’s titanium exports for the financial year which ended in June 2019 grew by 5.4 per cent from 20.5 billion Kenyan Shillings to 21.7 Billion Kenyan Shillings.
The reduction in distribution and selling costs as well as a cut in its finance costs, also helped grow the company’s net earnings.
