Customs agents fret over possible blacklisting after KRA vetting
Mombasa port staff supervise the offloading of wind turbines in 2016. Clearing and forwarding agents in Mombasa are anxious over claims that the Kenya Revenue Authority (KRA) has moved to clean up the list of customs agents. FILE PHOTO | NMG
Normally, the agents are issued with trading licences by January of each year, but this time round they have been operating without the 2017 licences as vetting progresses.
But following inquiries by the Business Daily, KRA denied having drawn such a list.
The commissioner said the evaluation process was ongoing, with those compliant being issued with licences.
Clearing and forwarding agents in Mombasa are anxious over claims that the Kenya Revenue Authority (KRA) has moved to clean up the customs agents list by striking out those believed to be engaged in shady deals.
Sources revealed that at least 200 agents have been blacklisted after the vetting that has been going on for the past six months now.
Normally, the agents are issued with trading licences by January of each year, but this time round they have been operating without the 2017 licences as vetting progresses.
“These agents will not be issued with licences because they have been mismanaging the security bonds for transit goods. They owe the taxman billions of shillings in bonds that have not been accounted for,” the source said.
But following our inquiries, KRA denied having drawn such a list.
“No agent has been blacklisted, unless those under suspension for different offences or under investigation,” said Julius Musyoki, the Commissioner for Customs and Border Control.
“If suspended from operating, once the issue is concluded the investigating officer recommends reinstatement or otherwise,” Mr Musyoki added, without stating how many had been suspended.
The commissioner said the evaluation process was ongoing, with those compliant being issued with licences.
Concerning the alleged bonds that have not been accounted for, Mr Musyoki said that units in charge of cargo destined to partner states are responsible for bond reconciliation.
“It is only after full reconciliation that bonds can be deemed unaccounted for and the agent is called to account,” he said.
However, the Kenya International Freight and Warehousing Association (Kifwa) chairman-elect William Ojonyo accused KRA of secrecy in dealing with the licensing issue, and asked the taxman to adhere to an agreement it signed with his firm on behalf of agents.
“We entered into a consent with KRA over the procedure of issuance of the 2018 licences but we have not received a response,” said Mr Ojonyo.
The agents have been embroiled in leadership wrangles in their umbrella organisation Kifwa, with two factions jostling for positions.
Mr Ojonyo leads a splinter group that accuses the Auni Bhaiji-led (national chairman and managing director of Bollore Logistics) group of being “compromised” by KRA in a bid to kick small clearing and forwarding agents out of business by purporting to vet them.
The wrangles have spilled to court, with each faction electing their leaders and fighting to have them recognised by the Registrar of Societies.
On Thursday, Bernard Simiyu, Mombasa branch secretary in the Bhaiji faction, claimed there were some agents who were misleading others by “purporting to champion for their rights.”
“We are also aware that some agents have contributed some money said to be used to fight us in court but let me tell them that they are being conned,” he said.
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