HIV Drugs Worth Sh1.1 Billion Donated by US Stuck at Mombasa Port as Gov’t Makes Sh90 Million Tax Demand

The Kenyan government and the US Agency for International Development (USAid) are embroiled in a tax row that has left life-saving HIV and tuberculosis drugs worth Sh1.1billion stuck at Mombasa Port for weeks.

Business Daily reports that the consignment arrived at the port on January 18th but is yet to be cleared after the government demanded Sh90 million in tax from Chemonics, a private American company that imported the drugs on behalf of USAid.

Kenya argues that the import arrangement between USAid and Chemonics violated tax waiver policies on government-to-government donations and wants Chemonics to pay duty as a private entity before the package is cleared.

“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,” USAid mission director Mark Meassick said in a letter to the Health Ministry.

The stuck consignment is part of the antiretroviral drugs worth Sh7.6 billion donated to the Ministry of Health by the USAid.

The Health Ministry has reportedly advised the USAid to change the listed consignee from the private company to the Kenyan government.

The National Empowerment Network of People Living with HIV and Aids in Kenya (NEPHAK) has called on the ministry to facilitate the clearance of the cargo to avert suffering for thousands of patients.