Transporters criticise KRA terms

With two weeks to the deadline for installation of electronic cargo tracking systems on transit trucks, and only 400 vehicles fitted, transporters are accusing the Kenya Revenue Authority (KRA) of forcing them to buy the gadgets from one supplier, and not following the right procurement procedure.

They have termed the prices being offered by Navisat Terematics — the company licensed to sell the devices — exorbitant and demanded that KRA licenses other vendors to allow for competition, besides extending the deadline.

The electronic devices, which will enable KRA track transit cargo between Mombasa port and Malaba border, are supposed to have been fitted on the trucks by June 30.

During a sensitisation workshop at the Travellers Beach hotel on Wednesday, Navisat officials said the company is charging $850 (about Sh66,300) for the system reader, $250 (Sh19,500) for the seal, $100 (Sh7,800) for installation and Sh2500 monthly for the service per truck.

However, SGS, another company that has been licensed to sell the devices but whose system is yet to be tested to determine whether it has fully been integrated with the KRA system, is charging $650 (about Sh50,700) for the reader.

Lease the seals

“To reduce the initial cost of installation to the transporter, we will lease the seals to them for only Sh1 (Sh78) and Sh1,500 monthly for the service,” said Mr Isaac Kwoba, SGS promotions manager, East & Southern Africa.

These price variations have outraged the transporters and they have complained that the initial cost of installing the device was too high.

Opposed

“We are not opposed to the system because we know it has benefits. But if the prices can vary this much, then with licensing of more vendors we will get better rates,” said KTA chief executive, Ms Eunice Mwanyalo.

“Transporters do not want a situation where there is a cartel-like operation meant to benefit only a few individuals,” said Mr John Kaingu, a strategic consultant with Globallnet Enterprises.

However, assistant commissioner for ICT Mr Collins Mukhongo defended KRA, saying that the procurement process was transparent and above board.