Govt Lists New Conditions for Businesses to Seal Revenue Loophole

A collage of President William Ruto (left) and oil arriving at the port of Mombasa (right)
A collage of President William Ruto (left) and oil arriving at the port of Mombasa (right)
PCS
KPA

Kenya Ports Authority (KPA) Managing Director, Captain William Rutto, on Saturday, June 24, issued new directives to businesses exporting goods through the Port of Mombasa.

In the notice, Captain Rutto stated that there was a need to realign the port operations to automate processes and ensure that the government increases revenue generation. 

In coordination with other revenue authorities, KPA explained that the new terms and conditions also aimed at ensuring efficiency port operations.

"In a bid to enhance service delivery and improve the Customer experience at the Port of Mombasa, effective Monday, July 3, 2023.

A portrait of KPA MD Captain William Ruto.
A portrait collage of KPA MD Captain William Ruto.
KPA

"All export cargo brought to the Port for shipment must have relevant online approved permits on Kenya Trade Network Agency (KENTRADE) portal," the notice read in parts.

KPA recognised the Port of Mombasa as the largest and busiest port in East Africa, handling significant export cargo. As such, the clearance process can be time-consuming and inefficient.

Captain Rutto explained that the new technological interventions had been installed to help reduce the time taken to clear a container for export.

Registration of export cargo is vital in populating Electronic Data interchange (EDI), which allows for the electronic exchange of data between different organisations involved in the export process.

The Web-based application on the Kenya Trade Network Agency (KENTRADE) portal is used by the Port of Mombasa to submit export declarations and track the progress of export shipments.

"Non-compliant cargo will not be accepted into the Port," Kenya Ports Authority (KPA) Managing Director Captain William Rutto warned 

KPA explained that customs officials and clearing agents use the new terms and technological applications to access information and complete transactions

"Customers are further reminded that as per the Customer Notice on Closure of Acceptance Period for Export Cargo, the acceptance period for Export Cargo into the port strictly closes 24 hours prior to the berthing of the booked vessel.

"We reaffirm their commitment to facilitate trade and enhance the ease of doing business," Captain Rutto stated.

A photo of Deputy President Rigathi Gachagua and Roads CS Kipchumba Murkomen arrive at the Port of Mombasa on March20, 2023.
A photo of Deputy President Rigathi Gachagua and Roads CS Kipchumba Murkomen arrive at the Port of Mombasa on March 20, 2023.
Rigathi Gachagua

The Port of Mombasa leverages on other technologies, such as Radio Frequency Identification (RFID), that can be attached to export containers, and scanned by customs officials to quickly and accurately identify the contents of the container

Another technology that enhances the clearance of export cargo is non-intrusive inspection (NII), such as X-ray machines used to inspect the contents of a closed container. This helps to reduce smuggling, and it can also speed up the clearance process.

Delays in the clearance of export cargo at the Port of Mombasa affect revenue collection by increasing demurrage charges.

The delays may also lead to a loss of market share, especially if exporters cannot meet their delivery deadlines.

On February June 2, President William Ruto assured traders that his administration was going to change how the Port of Mombasa operated and conducted businesses.

President Ruto stated that his administration was going to engage developers and investors through a Public Private Partnership so as to revitalise the largest port in East Africa.  

Ruto State House
President William Ruto at State House Nairobi during the signing of the European Union Economic Partnership Agreement on June 19, 2023.
PCS
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