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Some of the lorries queuing outside the National Cereals and Produce Board Changamwe Deport as they wait to be loaded with maize bags. Under a new rule introduced by KRA, transporters will be required to procure the electronic cargo tracking hardware at a cost of about Sh90,000 for every truck.

In Summary

  • Transporters oppose KRA move to have them fix Sh90,000 software on vehicles
  • By GITHUA KIHARA

A row has erupted between the Kenya Revenue Authority and shippers over the planned introduction of an electronic cargo tracking system expected to come into effect in two weeks time.

Under the new rule, transporters will be required to procure the electronic cargo tracking hardware at a cost of about Sh90,000 for every truck. They will also have to pay for installation and a monthly communication cost of about Sh2,500.

Truck location

All trucks, tankers and containers carrying goods on transit, exports and any goods under KRA’s control will be fitted with a tracking device and an electronic seal which will send the seal status and truck location to the authority on real time basis.

Maritime stakeholders have, however, questioned the cost of installing the gadgets on all vehicles ferrying transit goods and those manufactured under bond.

All importers, exporters, clearing agents and transporters will be required to comply with the electronic tracking system, KRA said in a public notice last year.

“The current tamper proof seals will be phased out and replaced by the electronic seals,” the notice on 16 July last year said.

Kenya Transport Association (KTA) chief executive Eunice Mwanyalo said the cost of installation is very high and will increase the already high charges of transport along the Northern corridor.

“KRA has appointed a few agents who are charging a high fee to install the system and it is not clear who will be held accountable between KRA and the supplier if the system does not meet the expected standards,” said Ms Mwanyalo.

Extra cost

KRA’s commissioner in charge of communication and marketing Kennedy Onyonyi confirmed the invitation of the expression of interest but could not immediately state the names of firms that were appointed to install the software.

“This is an extra cost that will make the corridor expensive and once the extra cost is passed to consumers, the price of goods will go up,” she said.

Kenya Shippers Council said that although the electronic cargo tracking system will help shippers in monitoring the movement of the cargo, the cost is high.

“We are advocating for customs to find a way of passing incentives to absorb the extra cost by either reviewing licensing regime or lessening the tax,” said CEO chief executive officer Gilbert Langat.

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