The Kenya Revenue Authority (KRA) has suspended the registration of new Container Freight Station (CFS) operators and that of new clearing and forwarding agents indefinitely.
KRA Commissioner General, John Njiraini, said this is aimed at weeding out “unscrupulous” CFS operators and clearing agents.
“It has been resolved that CFS operations be re-visited with a view to weeding out malpractices including the abetting of fraudulent trade practices. A re-vetting process has commenced that involves a cross section of Government agencies, with the aim of determining the suitability of the CFSs in existence,” Mr Njiraini said.
The tax man pointed out that CFSs that fail to meet the prescribed requirements within the time frame provided shall be struck off the register and become ineligible to receive cargo.
“Because of the weak regulatory regime, the clearing and forwarding business continues to attract persons of dubious character and for whom no effective disciplinary regime exists,” he said.
Mr Njiraini made the announcement as he met members of the Kenya International Freight and Warehousing Association (KIFWA), the umbrella clearing, forwarding and warehousing companies in Kenya.
He said a variety of reform measures which would enhance national security and efficiency in Customs management have been introduced by KRA.
They include the appointment of KRA’s first head of enforcement and border control within the customs and border control department, this week.
The head of enforcement and border control, designate, Njiraini disclosed, has extensive security sector experience.