KPA plans to share cargo fees with container depots

He said that the move would help to decongest the port. Kenya Revenue Authority (KRA) does not allow CFSs to handle transit cargo due to concerns over dumping into the local market. However, the depots handle transit vehicles.

But CFS operators have faulted the rule, saying that it is easier to divert a car into the local market than a container with a customs seal.

Port congestion

Early this month, Ms Memo wrote to officials of one CFS allowing them to handle transit containers.

However, she instructed them to segregate an area meant for such cargo and execute a separate customs bond of Sh100 million for transit goods.

“All containers for transit goods destined to your CFS must be transported by trucks fitted with an electronic cargo tracking system (and) a monthly report of all transit containers cleared must be submitted to the commissioner’s office,” Ms Memo said.

Mr Kipturgo said that transit container traffic, which accounts for 40 per cent of imports, was mostly to blame for congestion at the port.

He urged KRA to licence more CFSs to handle transit cargo, adding that the move would ease congestion.

gmarete@ke.nationmedia.com