Sh1.1billion worth of HIV and tuberculosis drugs are stuck at the port of Mombasa following a tax tussle between the Kenyan government and the US Agency for International Development (USAID).
The consignment of has been stuck at the port since January 18 after the State handed a Sh90 million tax bill to Chemonics, a privately owned American firm which had imported it on behalf of USAid.
The Sh1.1 billion consignment is part of a Sh7.6 billion worth of antiretrovirus donation by the USAid to the Health ministry.
Kenya argued that the import arrangement flouted the tax waiver policies on government-to-government donations and that Chemonics had to pay duty as a private entity before the cargo could be released since any imports done through private firms doesn’t qualify for tax waivers.
Items withheld at the port include HIV testing, treatment and prevention commodities such as ARVs, laboratory reagents as well as TB diagnostic and prevention medications.
“USAid kindly requests your urgent intervention and assistance in clearing these obstacles with Pharmacy and Poisons Board (PPB) Import declaration Form(IDF)/import permit applications and tax and duty waivers,” says a letter to the Ministry of Health (MoH) signed by USAid mission director Mark Meassick
Any drug donations should be consigned to the Government or ministries in order to qualify for tax waivers.
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