Port staff protest against increased tariffs

More than 1,000 clearing and forwarding agents in Mombasa are up in arms over high taxes which were imposed by the Kenya Revenue Authority (KRA) two months ago.

According to Kenya International Freight and Warehousing Association (Kifwa) Mombasa branch Secretary Bernard Simiyu, the tariffs were imposed on commodities such as rice, tyres, batteries, powdered milk, linen among others.

Mr Simiyu said: “KRA didn’t inform us about the increased tariffs. We just learnt about the duty increase two months ago when our members went to clear cargo at the port.”

As a result of the high taxes, he said said the agents were unable to clear 1,200 containers from the port of Mombasa.

He added that efforts by the association to seek audience with the tax agency's Commissioner-General John Njiraini have been futile.

Addressing journalists at the association's offices in Mombasa on Monday, Mr Simiyu called on the government to address their concerns failure to which the agents would stop lodging entries in clearing cargo at the port.

“Clearing and forwarding agents can no longer afford to clear imported goods at the port owing to the high tariffs which were imposed by KRA two months ago.

“Unless the government addresses the matter, thousands of workers are going to lose their jobs as the clearing and forwarding companies are being driven out of business,” he said.

Mr Simiyu added that stakeholders in the sector must be involved in decision-making so that work can run unhindered.

“We are not opposed to paying taxes, but we must be involved in decision-making with regard to imposition of new tariffs as they increase the cost of doing business at the port,” he added.

EXPENSIVE WORK

Kifwa Mombasa branch Chairman Eric Gitonga warned that its members would boycott if their grievances are not addressed.

Mr Gitonga appealed to President Uhuru Kenyatta to intervene to prevent revenue collection from being adversely affected.

“KRA officials have frustrated us and now we wish the President could address our grievances to save our businesses from collapsing,” he said.

Mombasa MPs Abdulswamad Nassir (Mvita), Badi Twalib (Jomvu) and Omar Mwinyi (Changamwe) asked the government to address the issue to prevent job losses.

Mr Nassir said the increased tariffs had made it difficult for agents to clear cargo at the Port.

"The increased tariffs has made the clearing of cargo at our port more expensive compared to the port of Dar es Salaam in Tanzania.

"The problem has also affected importers as the uncollected containers are incurring demurrage charges,” he added.

With reduction of tariffs, Mr Mwinyi said cargo clearing will be affordable.

But when KRA Southern Region Senior Assistant Communication Commissioner Fatma Yusuf was reached for comment she said she would inquire from the KRA headquarters to get a position on the matter.