KRA defends MT Paloma fuel deal, cites Sh9.1 billion tax impact

The Kenya Revenue Authority has defended its handling of the controversial MT Paloma fuel cargo, telling the Senate that the 66 million litres of petrol imported by One Petroleum was never consumed in Kenya and therefore qualified for a tax refund after it was redirected to regional markets. The authority has also disclosed that the government's decision to reduce VAT on fuel from 16 to 8 percent has so far cost the exchequer about 9.1 billion shillings in foregone revenue