KRA nets Sh62m at auction of uncollected cargo

Kenya Revenue Authority (KRA) collected at least Sh62.2 million from the first public auction this year held at the Mombasa port on Wednesday.

The taxman auctioned 53 assorted goods including vehicles, household items, construction materials and other assorted goods at an auction billed as one of the most transparent in recent years.

CARGO

“The goods were auctioned after the importers failed to pay duty to enable them to collect their cargo from the port even after the Authority issued a one month notice,” said KRA in a statement.

“The auctioning of abandoned goods at the port of Mombasa is part of the authority’s efforts to decongest the facility and enhance efficiency,” KRA said, adding that another auction will be held on January 17.

Last year, KRA auctioned goods worth over Sh500 million.

In the past, buyers complained that some individuals were cutting deals, with some traders accusing unscrupulous importers of refusing to collect their goods through the normal procedure only to appear at the auctions and buy them at throw away prices.

BIDDERS

KRA fixes reserve prices for goods to be auctioned, with bidders expected to pay at least 25 per cent of the value of goods at the fall of the hummer in cash or bankers’ cheques.

KRA has been blacklisting and denying access to bidders who fail to pay for goods they book at the auction.

The move was expected to weed out cartels that had exploited loopholes at the sale to edge out genuine buyers.

“The fake bidders are the ones who make people think that officers are involved in the auction cut deals. We will not allow traders who bid but fail to pay for the goods,” KRA said in a statement at the time.

Auctioning of abandoned goods also enables the authority to return empty containers to shipping lines for reuse.