New rules for freight tax agents

The future of a clearing and forwarding agents’ association looks uncertain after the Kenya Revenue Authority (KRA) changed rules for registration of tax collectors.

Previously, KRA demanded a certificate of clearance from the Kenya International Freight and Warehousing Association (Kifwa) for registration or renewal of licences. The association charged Sh7,000 for the certification.

Commissioner of Customs Wambui Namu on Friday said the revenue collector had found it difficult to work with the association due to leadership wrangles.

In a public notice in newspapers on Thursday, the taxman invited new applicants for registration to collect tax on its behalf, but did not say a licence from Kifwa would be required.

“We are in the process of streamlining tax collection and we don’t want the exercise to derail simply because of the leadership wrangles in Kifwa,” Ms Namu said.

Registration of new tax collectors will go hand in hand with renewal of licences for existing agents, the notice said. KRA also welcomed applications from importers wishing to clear their goods themselves.

Operations at Kifwa have been grounded by management wrangles in the past three years. The wrangles peaked last week when a faction held elections for the Mombasa branch and national office.

The elections followed a court ruling directing the group to pick new leaders by end of this month