Sunday, May 26, 2024

Kenyan tycoon paying KPLC Sh100 million daily, Sh2 billion taxes per month

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Devki founder and billionaire Narendra Raval has called on president William Ruto to intervene to streamline the business environment in the country.

Speaking during the commissioning of the Cemtech Limited clinker plant in West Pokot, which President Ruto attended, the tycoon revealed some of the challenges Kenyan businesses are facing, including overtaxation and high power bills.

He disclosed that high power bills and taxes have been one of his firm’s biggest nightmares, noting that Kenya Power bills him Ksh1 billion every month.

In addition, the billionaire revealed he pays Ksh2 billion in taxes for his employees, which include deductions for the National Hospital Insurance Fund (NHIF) and the National Social Security Fund (NSSF).

“I pay over Ksh1 billion to Kenya Power every month. In total, that is almost Ksh100 million a day. I have to look for the money every day, and I thank my banks for trusting me,” he said.

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“I must tell you what I pay because I think the government is interested in what I pay in taxes. I pay Ksh2 billion shillings as a company every month to the government not as income tax but in the form of other deductions such as NHIF, NSSF, and others.”Raval added.

In a past interview, the businessman who has employed at least 11 000 people across his companies revealed that just a few months ago, he was paying at least Sh400 million to KPLC, but the recent increase in electricity charges has changed the dynamics.

“Our overheads, salaries, and power only come to Ksh.2 billion every month. So we have to look for Ksh.200 million every day apart from Sunday,” he said.

He added that his company also produces its own power despite the heavy electricity bill they remit to KPLC monthly. Narendra Raval is a businessman who has invested heavily in steel and cement manufacturing.

His recently opened clinker factory, Cemtech Limited, in Sebit West Pokot County is expected to produce an additional 2.5 million tonnes of clinker, which is the raw material involved in the manufacturing of cement.

It will become the second largest in Kenya after the Emali plant, which is also owned by Raval. The Emali plant currently produces 3.5 tonnes of clinker annually.

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