(MOMBASA, KENYA) – Clearing and forwarding agents at the Port of Mombasa have asked the Kenya Revenue Authority to withdraw a new Export Declaration requirement that they say has delayed cargo release and led to mounting storage costs. KRA has responded by explaining the legal basis of the rule.
The Export Declaration was launched on 3rd August and enforced from 1st September. Agents say it has been applied even to cargo shipped before its launch, leaving thousands of consignments stuck at the port and container freight stations.
Umulkhair Said, speaking on behalf of the agents, said motor vehicle importers already hold an Export Certificate, which should be enough without extra paperwork. Said asked the commissioner to order the release of all pending cargo and withdraw the Export Declaration requirement.
Peter Wambua, a clearing and forwarding company director, said the sector supports KRA’s regulatory role but wants new policies introduced with consistency and enough notice. He said policies introduced should be consistent with practical work in progress. Wambua said frequent changes make it hard to facilitate trade.
Wambua said about 5,000 units were accumulating daily across the port, container freight stations and inland container depots, with rising demurrage costs. He said the cost of demurrage is hard to estimate. A charge of about KES 6,000 ($46.70 / £36.40) per day can amount to large sums over two weeks, especially when dealing with about 10,000 units. Wambua warned that the burden would ultimately be passed on to ordinary Kenyans through higher business costs.
Kevin Oluoch, another clearing agent, said the sector’s grievances extended to unclear valuation guidelines for motor vehicles. He said agents were caught between KRA’s assessments and frustrated clients. Oluoch said clients keep moving from one clearing agent to another thinking they are being cheated.
Responding to the concerns, KRA Commissioner for Customs and Border Control Dr Lilian Nyawanda said the export declaration requirement is anchored in law. She said Section 23B of the Tax Procedures Act provides the legal basis. She said KRA is obliged to implement legislation enacted by Parliament while facilitating legitimate trade.
On the valuation dispute raised by Oluoch and other agents, Dr Nyawanda said the matter is currently before the courts. She said KRA would refrain from commenting on its merits in line with the sub judice principle pending the court’s decision.
Dr Nyawanda said KRA remained committed to working with stakeholders to ease disruption caused by statutory requirements. She said consultations would continue with freight forwarders, clearing agents and motor vehicle dealers to find lawful solutions.