Move quickly to end row over new revenue plan

With the government rolling out plans to eradicate delays at the port of Mombasa, local clearing and forwarding companies are now crying foul over a plan to collect customs duties for landlocked countries at the port.

Members of the Kenya International Freight and Warehousing Association want the new system, dubbed the Single Customs Territory, to be suspended until all interested stakeholders are roped in and proper structures set up.

The freight agents say thousands of workers in the transport sector stand to lose their jobs if the plan is rolled out on August 1.

It estimates that more than 500,000 people are employed in the transit trade and transportation sectors.

It also warns that nearly one million people operating small businesses along the Northern Corridor and border points would be affected.

Kenya, Uganda, South Sudan and Rwanda last month signed an agreement that would see customs duties for goods destined for the landlocked countries collected at the port of Mombasa.

According to the agreement, collection of taxes will be done at the country of destination before the cargo leaves the port.

Currently, clearing agents in Kenya enter transit goods through the system where security bonds are levied to ensure they are not dumped within the country.

According to the association, local insurance firms that issue the security bonds will lose the business once the new plan in implemented.

The move is aimed at easing the flow of cargo from the port to the countries and eradicating congestion. The problem of delayed cargo at the port has been blamed for slowing down operations at the port.

While the Kenyan clearing and forwarding companies have reason to worry about loss of business, we believe that the main aim of ensuring efficiency at the port should not be lost in the row.

We also urge the government to address concerns raised by the companies about unfair business practices and loss of jobs.

There is need to ensure that red tape at the port is eradicated so as to ease the flow of goods. However, it’s only by engaging in a sober dialogue that the protagonists can reach an amicable solution.