KRA bid to decongest Mombasa Port runs into storm

A plan to ease congestion at the Mombasa Port has run into a storm over the cost of items put out for auction.

Bidders complained that the items were too expensive as most of them returned home empty handed.

The Kenya Revenue Authority (KRA) plans to sell several items, including vehicles, after owners failed to collect their containers.

According to KRA, most of the overstayed cargo could have been imported by cartels involved in tax evasion and diversion of transit cargo.

This came as it emerged that the biggest chunk of the cargo already auctioned and others awaiting the fall of the hammer, belong to Kenyan and Ugandan importers.

According to KRA, it was not normal for businessmen to import goods and then refuse to claim them.

About 70 per cent of the goods listed for auction are said to be owned by Kenyan importers while 15 per cent belong to Ugandans and the rest belong to South Sudanese and Rwandans.

Hundreds of prospective bidders who had converged at the Mombasa Port Custom Warehouse said the prices were out of reach for them.

Mr Stephen Kyalo, a Mombasa-based businessman, said he is frustrated after he was unable to get the items he wanted to buy.

"I have spent the last two days running up and down viewing the commodities coming up for sale but prices have put me off. I had even borrowed money to purchase the goods but very expensive," he said.

Another trader, Mr Sammy Masila, said KRA should have reduced the cost of containers that were half packed.

"I compared the goods that are up for auction at the port and those in the market and realised that KRA was not giving a good deal. Its pricing too prohibitive though,'' he said.

KRA officers said the prices were informed by several factors, including offsetting rent for warehouse where goods were stored, custom security and the cost for planning the auction among other costs.

Items that were up for sale included 37 different vehicles which were being re-offered for sale. The vehicles include used Toyota Probox, Toyota Mark X,Toyota Corolla Axio and Toyota Hiace van.

A 60-day waiver for cargo imported before December 2014 was given but importers had not claimed their goods as expected.

The cartels are said to have been colluding with rogue custom and Kenya Ports Authority officials to sneak the cargo at the port or let it go for auction and later buy it at cheaper price. KRA is said to have raised about Sh90 million in the last auction.