Kenya Revenue Authority directive on South Sudan cargo sparks controversy

A directive by the Kenya Revenue Authority that South Sudan cargo be exclusively handled by one clearing agent and two Container Freight Stations has sparked a major row at the port of Mombasa.

Port users have accused the agency of encouraging unfair business practices and said the order has caused confusion after the ministries of Foreign Affairs and Transport and Infrastructure on the one hand and KRA on the other issued conflicting directives.

South Sudan has been handled by Compact and Portside CFSs and Panda Clearing Company, but agents and CFS owners have opposed the arrangement saying it has promoted favouritism.

And after a year-long tussle, the two ministries directed that exclusive handling of cargo goes against regional trade practices, and ordered the arrangement reversed.

SUSPEND DIRECTIVE

On July 4, Foreign Affairs principal secretary Dr Karanja Kibicho wrote to KRA commissioner-general John Njiraini questioning the manner in which Panda Clearing Company was appointed to handle all South Sudanese Cargo.

“Implementing this decision poses a number of challenges, with adverse operational and legal implications… we have informed the government of South Sudan to suspend the directive,” Dr Kibicho said.

His Transport and Infrastructure counterpart Nduva Muli then wrote to KPA managing director Gichiri Ndua on September 3, 2014 instructing him “to suspend, forthwith, reservation of all South Sudan cargo to selected facilities until further notice”.

Then last Friday, operations manger Twalib Khamis wrote to stakeholders informing them of the stop order.

But later in the day, Commissioner of Customs Beatrice Memo sent a note saying that the GoSS would wish that cargo destined to that country be handled by the clearing firm and the two CFSs for security reasons, sparking the current row.