KRA says cargo tracking devices mandatory

October 18, 2010
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, NAIROBI, Kenya Oct 18 – The Kenya Revenue Authority is adamant that all transporters ferrying cargo from the Port of Mombasa will have to install the electronic cargo tracking system on their tracks.

This is despite a court order suspending their implementation after the Kenya Transport Association (KTA) raised an appeal arguing it was discriminative.

KRA Commissioner General Michael Waweru said on Monday the system, which monitors goods on transit between Mombasa and the country\’s border points, is part of the taxman\’s reform process that is aimed at improving efficiency and security of goods in transit.

"I can assure you there are people who have implemented it voluntarily but we are hopeful they will eventually see the need to put this on their vehicles because it enables them to transport cargo across our borders without us interfering with it," Mr Waweru said.

The tracking system is capable of automatically collecting data of trucks whether on transit or stationary and whether they are sticking to official routes.

The tracking and sealing verification process is undertaken at every potential data collection point, at exit/entry gates, transit stations, weigh bridges, and storage areas.

The system was introduced to curb rising cases of loss and diversion of goods on transit.

KTA however said the introduction of the system was discriminatory as it selectively applied to lorries, trailers and trucks and yet there are several competitors with foreign-registered vehicles from within East and Central Africa operating and performing the same duties within the same locality and designation.

They also took issue with the installation of the system which they said force them to adjust transportation charges upwards to offset money paid to KRA.

Mr Waweru was confident that the charges would come down as more truckers have the system installed.
"The cost is going to be borne by the transporter but we hope the cost will drop as more and more are implemented," he said.

He was speaking during the launch of the KRA Taxpayers Week, which is used to engage the public on developments at the authority as well give clarification on requirements.

The CG exuded confidence KRA was on target to meet this financial year\’s target of Sh641.2 billion sighting a 13 percent monthly growth rate of tax collected in the first quarter of the 2010/2011 financial year.

"By the end of this quarter, hopefully, we will be achieving something between 15 and 16 percent growth rate," he said.

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