KRA to auction unclaimed cargo at Mombasa port

A cartel has in the past been accused of controlling and manipulating prices at the auctions.

A shipper who did not wish to be named in the media for fear of compromising his business said that the cartel members are sometimes the importers of the cargo they offer to buy during the auction.  

Over 25 per cent of the cargo listed for auction this season has not been claimed and both the consignee’s name and addresses are not known.

The last auction at the Kilindini port early last year generated a row between the successful buyers and CFS operators.

The buyers are not supposed to pay any fee for any accumulated charges since they take responsibility of the cargo at the fall of the hammer.

But since CFS are operated by private investors and are run in a weak legal framework environment, it is not clear who should pay them the accumulated storage charges.

Once the cargo is due for customs warehouses, KRA does not take its physical possession and both KRA and CFSs operators continue to charge storage fees for the same cargo.

Last year, the successful bidders were asked to pay storage fee amounting up to Sh120,000 for a 20ft container which was not mentioned on the fall of the hammer and the process was in several occasions called off after bidders protested over the charges.