Uganda clearing system locking out Kenyans, say agents

The newly installed gantry cranes off-loads containers from the MV Busan Trader after she docked at the port of Mombasa‘s second container terminal on Tuesday. Hitches in operating the new Uganda clearing system for cargo has locked out Kenyan agents. [PHOTO BY GIDEON MAUNDU/STANDARD].

A storm is brewing in Mombasa over the inability by clearing and forwarding agents  to clear cargo destined for Uganda.

The Uganda Revenue Authority’s (URA) new electronic clearing system has locked out more than 1,000 agents at the Mombasa port.

Kenya International Freight and Warehousing Association (Kifwa) Mombasa chairman Eric Gitonga said agents from Uganda and other countries should assess the new Asycuda system.

“We are appealing to authorities to consider allowing the use of the Simba system until Asycuda stabilises,” Mr Gitonga said.

A Kifwa member Ahmed Shimbwa noted that only 140 Kenyan clearing and forwarding agents could transact on the Ugandan system out of the 15,000 corporate members. “There is need for training and hastening of the password accessibility for the Asycuda system. At the moment 300 Kenyan agents have the Asycuda password and only 140 can transact business. It is a major crisis,” said Mr Shimbwa, the managing director of Panal Freighters.

The system implemented two weeks ago requires Kenyan clearing agents to seek authority from URA to access the clearing system.

Uganda controls over 60 per cent of transit goods passing through Mombasa port and the move to elbow the Kenyan firms out has forced many local clearing agencies to shut down, leading to job losses.

Uganda imports more than 3,000 vehicle units a month through Mombasa. Under the single customs territory regime being rolled out in phases since 2013, each of the East African Community member states has deployed a clearing system with Uganda having Asycuda and Kenya the Simba system.

The clearance systems are supposed to fast track clearance of cargo across the borders before implementation of the customs union that will see free movement of goods and people.

But the Kenyan freight fraternity said they were being blocked from clearing Ugandan vehicles and steel imports as most of them have no passwords for Asycuda system and, for those who have, most passwords cannot work

Gitonga said on Wednesday that members were set to hold a crisis meeting to chart the way forward.

Former Kifwa Mombasa branch chairman Peter Otieno said it was unfair for Kenyans to be blocked from transacting Ugandan business.

He noted that the new arrangement was meant to ensure one company cleared cargo going across borders but insisted that Kenyans should benefit because the goods pass through the port of Mombasa.

“The port of Mombasa is our natural gift and we must benefit from the Ugandan imports and exports passing through this port,” Otieno said. He urged Kifwa officials to lobby on behalf of members.

The Kenyan agents complained that they have also not been adequately trained on the Ugandan system hence the hitches.

Under the Single Customs Territory, all goods are cleared under a duty paid and warehousing regime. This is meant to reduce the cost of doing business by eliminating duplication of processes.

It is also aimed at reducing administrative costs, regulatory requirements and the risks associated with non-compliance on the transit of goods.