Fresh cargo pile-up hits port as agencies seal tax loopholes

Importers are counting losses running into millions of shillings as they grapple with lengthy clearance procedures meant to curb revenue leakage as cargo piles up at Mombasa port.

The importers are blaming the Kenya Revenue Authority, Kenya Bureau of Standards and Kenya Trade Network Agency for causing the delays, even after they paid the required taxes.

Abson Motors financial controller Esha Mohammed said the firm lost about Sh20 million last month after its goods were held at the port for about 35 days.

“Our goods reached the port on July 27 but they were released yesterday (Thursday) after which our company paid a demurrage cost of $10,000,” she said.

For goods to be cleared at the customs offices at the port, one’s document must be sent via an online system, checked and cleared by the three agencies. The new system was introduced three weeks ago.

Clearing agents said the system causing the pile-up was introduced without involving the stakeholders.

However, Kenya Ports Authority managing director Daniel Manduku attributed the hitch to a rise in the number of large ships docking at the port.

Francis Kamau, a clearing agent, said they take a longer time to clear cargo under the new system, causing delays at the port, which attracts high demurrage cost.

“Before, we could clear goods within seven days. Now, we take more than 35 days to clear our containers.

“These people are tossing us around, we send our documents to them, one of the agencies says it has not received it, then we have to repeat the whole process again,” he said.