Kenya;s High Commissioner to Tanzania Dan Kazungu has dismissed claims that he is behind a sh. 18 Billion Cashew nut deal.
Kazungu a former Cabinet Secretary for Mining said he did not endorse nor give Indo Power Solutions a Kenyan company a clean bill of health to buy 100,000 tons of cashew nuts.
In a Press release, the Ambassador said as per the article that was in one of the online Kenyan Daily newspapers, the Minister for Trade and Industry wrote to the Tanzanian embassy in Kenya in December 2018 to do a background check on Indo Power Solution.
“The Tanzanian Embassy in Kenya confirmed the registration of the company in Kenya. Curiously and strangely however, this is not being termed as ‘endorsing’ by the writer,” he said.
Kazungu said in January 2019 a month later the Minister wrote to indo power Solutions requesting the Kenyan High commission in Tanzania to present the company’s documentation which they dutifully obliged and asked the company to furnish the mission with the general ‘know your customer documentation for them to determine its legality
Kazungu said the Mission through their commercial division formally wrote to the PS in the Ministry of Industry and trade on January 22 2019 who confirmed that the company was registered in Kenya on December 10 2008.
He said the PS further revealed that the company was incorporated on October 6 2016 under the companies Act 2015 and issued with a certificate of incorporation number PVT/2016/027129.
He said they learnt from the PS that the company was registered by Kenya Revenue Authority and issued with a PIN no. P051615703B.
“The company had an Import Certificate No. KRA201700650595 to operate in the business of importation and exportation of Soya and Pigeon beans, Cashew nuts, wheat, sun flower and carola oils, black pepper, green mung etc. ,” he added.
Kazungu said due to the facts from the Ministry about the firm, the Mission encouraged persons and organizations to be at liberty to do business with the company.
“That isn’t endorsing. It is stating the fact. And with the registration facts above, we are struggling to understand the “shadowy” label that has been given to the firm,’’ said Kazungu
The Former Malindi MP also stated that 18 firms presented their bids for the Cashew nuts some from far as from China, India among others.
He said Kenya had only one bid from Indo Power Solutions.
“Ultimately though, the final decision to award or reject any bid rested with the buying entity, the Nation Cereals and Produce Board of Tanzania,” he said.
The High Commissioners said when the Kenyan firm was picked, naturally, they rejoiced because it is their considered understanding that a huge part of his role in Tanzania is to encourage and promote Kenyan businesses.
He said promotion of Kenyan business was important especially now when because the volume of trade between Kenya and Tanzania has been drastically declining from KSh. 46 billion in 2012 to 28 billion in 2018.
“For me these numbers are unacceptable and should deeply concern all of us who believe in regional integration and its promise. I respectfully consider it my cardinal
duty and responsibility to ensure Kenyan Investments in Tanzania are not only encouraged and facilitated but are actively promoted for shared prosperity and job creation,” he said.
He said Kenya is number one country in Africa that has invested in Tanzania and overall, placed at position five (5) behind UK, China, US and India.
Kazungu said Kenyan firms have invested over Sh. 170 billion in Tanzania and created over 56,000 jobs for local Tanzanians.
“As a Mission, we will redouble our efforts towards facilitating Kenyan businesses for when they are successful, we are all successful. It is my sincere hope that this note has set the record straight and cleared any wrong impression and misunderstandings that might have been created, “he said.