Transporters halt cargo loading over KRA’s new electronic seal costs

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The Kenya Transporters Association has told members to stop loading cargo that needs KRA's new electronic seals. It says the taxman is unfairly shifting customs monitoring costs onto truckers, and the Nation reports Mombasa port operations face disruption.

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Kenya, Uganda

The Kenya Transporters Association (KTA) has suspended the loading of all cargo that requires the Kenya Revenue Authority's (KRA) new electronic cargo seals. In a statement seen by Kenyans.co.ke on Wednesday, KTA told members to stop immediately any loading that involves user-owned multi-vendor Regional Electronic Cargo Tracking System (RECTS) seals. On Thursday, the Daily Nation reported that Mombasa port operations face disruption as cargo transporters down tools.

The dispute is about who pays. KTA says KRA has passed the cost of mandatory customs cargo monitoring to transporters. The association calls this unfair and commercially unsustainable. "The Kenya Transporters Association Ltd (KTA) strongly opposes the Kenya Revenue Authority's (KRA) decision to transfer the cost of mandatory customs cargo monitoring to transporters," it said.

KTA also told members not to buy or lease seals, or sign contracts with seal providers, until KRA approves a sustainable cost-recovery deal. According to the association, KRA has set up no way for transporters to recover the extra costs through sustainable tax terms. KTA warned that the new charges could hurt the competitiveness of the Northern Corridor, which links Kenya to landlocked neighbours such as Uganda.

KRA rolled out the system on October 26. The authority said it aims to improve cargo tracking, cut delays and make cross-border trade more efficient. The new setup replaces a single-vendor arrangement in place since 2017.

According to KRA, the old system caused problems for transporters. Electronic seals were in short supply at cargo tagging zones, and ageing devices did not work well. Under the new model, vendors or users can own and manage seals based on their own commercial agreements. KRA says this gives transporters a choice of providers. It expects better seal availability, shorter queues, fewer false tracking alerts and faster clearance, with customs oversight intact.

KTA said it is seeking urgent legal advice. It plans to pursue remedies, including court action, to protect transporters' interests. For traders, a long standoff could mean delays in moving goods out of the port.

Sources Kenyans.co.ke, Daily Nation

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