More companies to supply cargo tracking gadgets

The companies will also install the gadget, giving hopes that the cost will now drop, said Ms Eunice Mwanyalo, Kenya Transport Association chief executive officer.

Installation per truck costs Sh71,000 with transporters required to pay a monthly communication fee of about Sh2,500, which KRA will share a part.

The new system has sparked debate with transporters saying another party should pay for the installation as it did not add value to their day-to-day operations.

They are pushing to have the cost shared with cargo owners.

But shippers say they are not in the business of carrying cargo and therefore will only pay for the service on pro rata basis unless in a long-term contract.

Kenya Shippers Council (KSC) says its members are not supposed to bear any cost except for those who have their own trucks.

“The issue of the cost should be handled very carefully as it might end up being absorbed by the consumers of the goods,” KSC chief executive, Mr Gilbert Langat, said.

He says the cost of the gadget can only be lowered by licensing more players since there are many operators who can provide the gadget.

New move

“A good number of transporters have already installed their own cargo tracking system, which they use to manage their trucks and this can provide the infrastructure for the system,” Mr Mwanyalo said, adding that transport association is offering to provide the gadget to over 20,000 trucks owned by its members.

Excisable goods exporters, manufacturers and container freight stations (CFS) were supposed to install the ECTS by April 30th this year while transporters had until June 30th to install the gadget on their trucks.

Kenya Revenue Authority agreed to consider on case-to-case basis with those who will not have installed the system by the deadline.

Over 350 trucks operating between the CFSs and the port have already complied with the requirement.

The current tamper proof seals and physical escort will be phased out and replaced by the electronic seals.

Use GPS

ECTS will use GPS and Radio Frequency Identification (RFID) to monitor cargo in real-time, whether stationary or in transit.

“No cargo under customs control shall be transported on vehicles that do not meet the requirements,” KRA said in a public notice in local dailies last month.

The Kenya International Freight and Warehousing Association (KIFWA) has also opposed the high fee.

KIFWA vice chairman Peter Mambembe said KRA should implement the project in phases because there is no guarantee that it will work as expected.