The Kenya Transporters Association (KTA) has suspended the loading of cargo requiring the Kenya Revenue Authority’s (KRA) new electronic cargo seal system, citing additional costs that it says could hurt transport businesses.
In a statement issued on Wednesday, November 4, the association directed its members to immediately stop operations involving cargo that requires user-owned multi-vendor Regional Electronic Cargo Tracking System (RECTS) seals.
KTA said it strongly opposed KRA’s decision to transfer the cost of mandatory customs cargo monitoring to transporters, arguing that the arrangement was unfair and commercially unsustainable.
The association also instructed members to stop purchasing or leasing the electronic seals and avoid entering into business agreements with seal providers until an acceptable cost-recovery arrangement is reached.
According to KTA, the authority has not established a mechanism that would allow transporters to recover the additional expenses through sustainable tax terms.
The association warned that the new charges could make Kenyan transporters less competitive and affect trade along the Northern Corridor, a major route connecting the Port of Mombasa to landlocked countries, including Uganda.
KRA rolled out the upgraded cargo tracking system on October 26, saying it would improve cargo monitoring, reduce operational delays and make cross-border trade more efficient.
The new arrangement replaces the single-vendor system that had been in operation since 2017. KRA said the previous model faced challenges, including shortages of electronic seals at cargo tagging points and ageing devices that frequently failed to work properly.
Under the multi-vendor system, service providers or users can own and manage the seals depending on their commercial agreements. The authority says this gives transporters more flexibility when selecting providers.
KRA expects the changes to improve seal availability, reduce queues and unnecessary tracking alerts, and speed up cargo clearance while maintaining customs oversight.
However, KTA maintains that transporters should not be forced to shoulder the cost of a mandatory customs monitoring service without a clear way of recovering the expenses.
The association said it was seeking urgent legal advice and would consider further action, including court proceedings, to protect its members’ interests. It maintained that loading operations involving the affected cargo would remain suspended until a sustainable agreement was reached.
LINK: https://www.kenyans.co.ke/news/129139-kta-suspends-cargo-loading-over-new-kra-e-seal-rules?utm_source=Facebook&utm_medium=ME&fbclid=IwZXh0bgNhZW0CMTEAcGRvZgRzcnRjBmFwcF9pZA80MDk5NjI2MjMwODU2MDkAAR9Ipqlsv24OZbd9vgfRNVgxU_3C4c5IIVwumWymKPItvTOHDOfy0vHgXh0vEw_aem_s8kwsjLZ_BBuc55ntmQiWg
Leave a Reply