Kenya Launches Investigation into Huawei for $12.57 Million Tax Waiver

Kenya Launches Investigation into Huawei for $12.57 Million Tax Waiver

The Kenyan government has initiated an investigation into Huawei Technologies (Kenya) Ltd., focusing on a substantial tax waiver totaling Ksh1.92 billion ($12.57 million). Parliament members instigated the probe to examine the circumstances surrounding the Chinese corporation’s acquisition of this significant tax relief from the National Treasury. Tensions have arisen between Kenyan MPs and Huawei, leading the Finance Committee to subject the company’s executives to intense questioning. Senior Huawei executives faced scrutiny from the committee but were unable to provide a satisfactory explanation for the tax waiver issued by the Kenyan Revenue Authority (KRA), leading to their dismissal.

Molo MP Kuria Kimani, the chairman of the inquiry committee, refused to meet with Huawei’s director, Kevin Wen, as the company failed to submit a written response to the committee’s inquiries beforehand. In response, Wen emphasized a distinction between Huawei Technologies (Kenya) Ltd. and the entity involved in the contractual agreements, stating that the scrutinized contract was with Huawei Technologies (China) Co. Ltd., not the Kenya-based entity. He emphasized their separation as distinct companies, clarifying that Huawei Technologies (Kenya) Ltd. is not a subsidiary and the contract in question involved a different corporate entity.


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