The port of Mombasa faces fresh threats of congestion following a directive by the government that all sugar imports and transit cargo be inspected at the facility’s main yard. As part of reforms aimed at sealing suspected tax leaks at the port, Transport secretary James Macharia on Tuesday ordered that the two categories of cargo would temporarily be inspected within the port instead of at Container Freight Stations (CFSs) as has been done previously. “All transit cargo will be inspected within the main port and not in CFSs (Container Freight Stations). We have also directed that any sugar imported into the country be inspected within the port,” he told a news conference in Nairobi. The directive however triggered concern over renewed congestion at the port even as inventories by its managers, the Kenya Ports Authority(KPA) showed that its container yard population as at January 3 stood at 14,033 Twenty-Foot Equivalent Unit (TEUs). “The CFSs were particularly designed to hold cargo away from the main port but when you revert to the old ways of holding some cargo at the port yard you run the risk of creating a fresh congestion within the port which is not good for the port’s profile,” Hassan Ibrahim, a cargo dealer in Nairobi told Shipping & Logistics. Kenya is a key gateway to the region in that the Mombasa port handles imports such as fuel and consumer goods for Uganda, Burundi, Rwanda, South Sudan, the Democratic Republic of Congo and Somalia and exports of tea...

The port of Mombasa has now fully adopted a regional guarantee scheme for cargo cleared at the facility as partner states of the East African Community moved to seal tax leaks and improve efficiency through a seamless trade platform. Starting February 1, all maritime products cleared under the Single Customs Territory (SCT) and the Transit Regime are now only secured by the Regional Customs Transit Guarantee (RCTG) instead of the previous National Transit Bond (CB8). This follows a directive by the Kenya Revenue Authority (KRA) that targets to reap the full benefits of the SCT platform. Kenya is a key gateway to the region as the Mombasa port handles imports such as fuel and consumer goods for Uganda, Burundi, Rwanda, South Sudan, the Democratic Republic of Congo and Somalia as well as exports such as tea and coffee from the region. A customs transit guarantee scheme ensures that customs officials in a transit country receive proper payment for dues and duties for any goods moved through their territory. Typically any person importing goods must deposit a security in form of cash, insurance bond or bank guarantee to cover for payment of custom duties or other charges due on the goods in every transit country in case the goods in transit are short landed or diverted for consumption in the country of transit. The issue of depositing cash or lodging an insurance bond or bank guarantee at each country of transit has been criticised as serious drawback to trade because it’s...

Four East African countries on Tuesday agreed to fast-track implementation of a common customs and transit cargo control framework to enhance regional trade. Commissioners-general from the Kenyan, Ugandan, Rwandan and Tanzanian revenue authorities said adoption of an excise goods management system would curb illicit trade in goods that attract excise duty across borders. They said creation of a single regional bond for goods in transit would ease movement of cargo, with taxation being done at the first customs port of entry. The meeting held in Nairobi supported formation of the Single Customs Territory, terming it a useful measure that will ease clearance of goods and reduce protectionist tendencies, thereby boosting business. Implementation of the territory is being handled in three phases; the first will address bulk cargo such as fuel, wheat grain and clinker used in cement manufacturing. ENHANCE REVENUE COLLECTION Phase two will handle containerised cargo and motor vehicles, while the third will deal with intra-regional trade among countries implementing the arrangement. The treaty for establishment of the East African Community provides that a customs union shall be the first stage in the process of economic integration. Kenya Revenue Authority (KRA) commissioner-general John Njiraini said the recently introduced customs and border control regulations were designed to enhance revenue collection and beef up security at the entry points. “At KRA, we have commenced the implementation of a number of revenue enhancement programmes particularly on the customs and border control front that will address security and revenue collection at all border points while...

MOMBASA: Taxes on goods imported through Kenya but destined for other countries will be paid in Mombasa in new changes to tackle diversion of transit cargo. A meeting of the regional heads of tax collection agencies including the Kenya Revenue Authority resolved to have importers pay at the port of entry “The Single Customs Territory will ensure that assessment and collection of taxes for goods destined for countries in East Africa is done at the port of entry,” KRA boss John Njiraini said yesterday. Previously, taxes on transit cargo were payable after the commodities arrive at the final destinations. It has however been impossible to monitor and track the thousands of trucks moving the cargo to ensure the commodities actually leave the country. Importers exploited that loophole to divert cargo, and often, only the security locks used to secure containers are taken to the border crossing points to conceal the fake handover. KRA has acknowledged that its own staff would be complacent in aiding such schemes, all aimed at evading taxes. Mr Njiraini added that the East African nations including Uganda, Tanzania and Rwanda are integrating their Customs systems to make it possible for the three countries to have a regional bond for goods in transit. A communique issued following the weekend meeting indicates that the taxmen are exploring new ways to simplify and harmonise tax procedures to enhance regional trade. Njiraini said that the regional bosses sought ways of fighting tax evasion, especially excise duty which is levied on...

Kenya Revenue Authority (KRA) Commissioner General John Njiraini said the tax body commenced the implementation of a number of revenue enhancement programs particularly on the customs and border control front. “These measures are designed to provide a sound platform to refocus Customs and Border Control operations to address security and revenue collection,” Njiraini said. The two-day meeting, also served as a peer review and learning session in operational management and on mutual interest technical issues. The revenue authorities, leadership teams, considered progress made on the Implementation of the Regional Customs Transit Guarantee (RCTG) Scheme, among other cargo transit control programmes. The cost of clearing cargo at the port of Mombasa and of transport along the Northern Corridor has gone down by 30 percent since the implementation of the East African Single Customs Territory (SCT). The revenue chiefs said a fully functional, Customs territory, will, make it easier to clear goods and reduce protectionist tendencies. This is directly geared towards enhancing the ease of doing business in the region. Across the region, the revenue bodies have committed to fast-track, the adoption of Excise Goods Management System (EGMS) solutions aimed at curbing illicit trade in excisable goods across borders. To address cargo diversion cases, the regional revenue authorities have been jointly pursuing programmes geared at reforming transit cargo clearance and monitoring processes. The East African nations are integrating their customs systems to make it possible for the three countries to have a regional bond for goods in transit. The SCT will ensure...

The Kenya Revenue Authority (KRA) and Uganda Revenue Authority (URA) have agreed to facilitate the establishment of a regional Electronic Cargo Tracking System (ECTS). An MOU was signed by URA, Commissioner General, Ms. Akol Doris and his Kenyan counterpart, Njiraini at the just concluded East African Revenue Authorities Commissioners General (EARACG) meeting, in Nairobi. KRA’s John Njiraini said the MOU will facilitate the integration of a regional ECTS systems to provide real time tracking of the movement of goods under customs control along the Northern Corridor.   It is also hoped the initiative will minimize diversion of goods under customs control, provide timely response to transit alerts, identify supply chain trends and hence enhance the decision making process and to safeguard national security. In line with the MOU , both KRA and URA are set to ensure that there is an effective and efficient Regional ECTS system that will minimize transit diversion, safe guard against revenue loss, expedite the seamless movement of goods, promote trade facilitation and lead to reduced costs of doing business between the two states. Source: The African Business Fortune

Nairobi — The Kenya Revenue Authority (KRA) and Uganda Revenue Authority (URA) have signed a memorandum of understanding (MoU) to facilitate the establishment of a regional Electronic Cargo Tracking System (ECTS). The MoU was signed by URA Commissioner General Akol Doris and her Kenyan counterpart John Njiraini at the just concluded East African Revenue Authorities Commissioners General (EARACG) meeting, in Nairobi. Njiraini said: "The MoU will facilitate the integration of a regional ECTS to provide real time tracking of the movement of goods under customs control along the Northern Corridor, minimize diversion of goods under customs control, provide timely response to transit alerts, identify supply chain trends and hence enhance the decision making process and to safeguard national security." In line with the MoU signed over the weekend, both KRA and URA will ensure that there is an effective and efficient Regional ECTS system that will minimize transit diversion, safeguard against revenue loss, expedite the seamless movement of goods, promote trade facilitation and lead to reduced costs of doing business within both Kenya & Uganda. Source: All Africa

There was panic at Kenya Ports Authority (KPA) yesterday after a board But while top managers were gripped by fear, there was muted celebration among the middle and lower cadre workforce at the Mombasa port, which has about 7,500 employees. A new management structure has been drawn and new officials identified by the board, which is set to make an official announcement soon. The new changes come a day after The Standard established that the incumbent Managing Director Gichiri Ndua has written to the board saying he wants to leave at the end of his contract in July. KPA Board Chairman Marsden Madoka said: “We will consider his letter, which he has written to the board asking to quit the job by July 31 this year.” Mr Ndua handed over his letter during a meeting of the board of directors chaired by Mr Madoka at KPA headquarters in Kipevu last Thursday. Reports indicated yesterday that five top officers at the port have been asked to proceed on leave pending termination of their contracts following months of mounting criticism over management of the port that has been rocked by claims of wanton graft, revenue losses, fake certificate scandals and inefficiency. Woman Manager The identity of those forced to go on leave has not been given and Madoka — who chaired a special board meeting — declined to divulge what was discussed. “I am a disciplined man and procedures of confidentiality have to be followed in case of any decision made by...

The much-anticipated sale of Ugandan sugar in the country has flopped due to lack of sugar surpluses in the neighbouring state forcing Kenyan authorities to withdraw import licences. Ugandan sugar millers have been hit by a shortage that has seen leading factory Kakira Sugar Works produce less than 100,000 tonnes out of the projected 180,000 tonnes. Kenya's Sugar Directorate said it has cancelled a number of permits issued to some traders after they failed to secure sugar from Uganda within the stipulated time. The permit normally allows traders to import sugar within 45 days, failure to which it is revoked. However, a trader can seek a few days extension if they provide valid reasons. "It is true that there is a shortage of sugar in Uganda and at the moment traders are not bringing in any stocks from the country," said head of the directorate Andrew Osodo. Mr Osodo said Kenya has not received any Ugandan stocks in the past two months for the permits issued in November. But the move is unlikely to have an immediate effect on the local market given that local sugar production has improved in the last few months. President Uhuru Kenyatta and his Ugandan counterpart Yoweri Museveni struck a deal in August last year under which surplus Ugandan sugar would be exported to Kenya to help bridge the annual shortage. The agreement triggered a storm with Members of Parliament saying such imports could depress local producer prices making it impossible to revive struggling millers...

Kenya’s second largest city, Mombasa occupies a special place in the national economy. As the host to the country’s leading seaport, it plays the critical role of being the gateway, not just to Kenya but to Uganda, Rwanda, Burundi, South Sudan, parts of northern Tanzania and eastern DR Congo. A huge proportion of imports and the exports in the region transit through the Port of Mombasa, making it a key player in the overall performance of the regional economies. The regional economies will only be as efficient as the port. Increasingly, the city is also on ascendancy as a tourist hub. A large number of tourists visit the island and the attractions around it. Only recently, the sandy beaches of Diani in Mombasa’s South Coast were adjudged the best in the world. The hinterland is equally rich in diverse flora and fauna and some of the world’s most famous conservation areas. Mombasa has thus evolved into a tourism hub, with most visitors including the Kenyan coast as part of their itineraries. We saw this trend with the many cruise ships and air charters that the city has played host to recently. For Mombasa, and indeed the Coastal region to continue effectively and efficiently discharge these critical roles, they must have a transport system that works, in tandem with the rest of the country. It is for this reason that the Jubilee Government, under the leadership of President Uhuru Kenyatta has put the necessary accent on and fast-tracked an impressive portfolio...