Uproar as KRA changes cargo clearance process
Times Tower, the Kenya Revenue Authority's head office in Nairobi.
A move by the Kenya Revenue Authority (KRA) to shift cargo clearance back to its offices instead of Mombasa port, and the 22 custom bond warehouses has triggered an uproar among traders and agents amid a fresh surge in delays as well as pilling storage costs.
In the shift, clearing and forwarding agents are now required to forward a two-page duly filled form to verification officers who are stationed at different KRA offices—unlike before when the documents were approved and signed at the port and depots.
The Kenya International Freight & Warehousing Association (Kifwa) has protested KRA’s new work arrangement saying it has increased the number of days of clearing consignments from one to more than five.
"The new policy, which has been introduced in what KRA is saying to eliminate collusion with its staff, has caused delays and made it cumbersome to clear cargo. The tax man has introduced a two-page form which is sent to offices not knowing who will handle it thus causing delays in clearing cargo," said Kifwa chairman Roy Mwanthi.
Speaking after the agents meeting with KRA officials at Mombasa KRA offices, Mr Mwanthi called on the government to reverse the new directive as stakeholders were not involved.
“To introduce such a directive all stakeholders should have been involved but this was just endorsed to agents this week without even a notice. We have met KRA officials but their hands are tied and they have escalated the matter to headquarters,” the official said. Mombasa Kifwa chairman Leonard Njiru said the government should adopt technology in resolving any customs issue rather than increasing tariffs and barriers.
“We understand KRA has its own integrity issues with their staff but that should not affect businesses instead they should reduce business frustrations,” said Mr Njiru.
During the meeting KRA said the process was part of measures to eliminate tax cheats and corruption but they would escalate the matter to its national office.
To improve transparency the State effected use of the centralised Integrated Customs Management System (iCMS). This means that no cargo will be cleared if not logged in the iCMS and Kilindini Waterfront Automated Terminal Operations Systems (KWATOS) at acceptance time.
iCMS replaced replaced KRA’s old Simba system which had been blamed for revenue leaks and delays in customs clearance.
KWATOS is an automatic operating system for container and conventional cargo terminals with capability to plan, execute and control operations.
KPA has enforced a 24-hour cut-off acceptance time for fresh produce exports and all government agencies involved in port operations as well as exporters expected to operate throughout.
The government has also addressed several bottlenecks of doing business such as reduction of the number of weighbridges for transit and implementation of pre-arrival clearance to streamline the export process
