Kenya/Uganda: Bamburi Cement’s profit after tax has been adversely affected by a tax claim in the first half of 2023. The cement producer said that its profit after tax was reduced due to the “settlement of corporation tax matters in Uganda.” Its turnover grew by 11% year-on-year to US$153m from US$138m in the same period in 2022. However, its profit after for tax fell by 7% to US$604,000 from US$652,000. As well as operating plants in Kenya, the subsidiary of Switzerland-based Holcim runs Hima Cement in Uganda.
Reporting by the Business Daily newspaper has revealed that the Uganda Revenue Authority (URA) started a review in 2020 of Hima Cement’s transfer pricing compliance between 2014 and 2018. The URA then raised its corporation tax assessment for Hima Cement in December 2022. Bamburi Cement has also faced additional penalties and interest charges from the Kenya Revenue Authority.