Base Titanium has received Kshs 363 million worth of accumulated Value Added Tax refund claims from the Kenya Revenue Authority (KRA) in the financial year ended June.
In total, KRA owes the firm Kshs 2.5 billion since it started mining titanium from its Kwale mines in 2013.
The Kshs 363 million refunds only cover 14.5% of the debt KRA owes the firm.
By law, the government charges royalties at a rate of 2.5% of the export values. As a result, Kenya earned Kshs 1.5 billion royalties from Base Titanium in the year ended June.
The Kwale mines posted a 13% jump in net profits to Kshs 4.96 billion in the period under review.
During the review period, sales revenue from Kwale titanium exports grew 5.4 per cent from Sh20.5 billion to Sh21.7 billion, which when supported by reduced selling and distribution costs and a cut in finance costs helped grow net earnings.
Base Titanium Limited is a subsidiary of Australian and UK-listed resources company, Base Resources Limited. Located in Kwale County, 50km south of Mombasa, it operates Kenya’s largest mine, which was officially awarded flagship project status under Kenya’s Vision 2030 national development blueprint.
