By Nicholas Waitathu

Kenya: Transporters are up in arms over the implementation of the Electronic Cargo Tracking System (ECTS).

The truck owners claim that they are delayed at Mombasa port as the firms contracted by the Kenya Revenue Authority (KRA) to offer the service lack adequate capacity.

Kenya Transporters Association (KTA) Chairman Paul Maiyo said companies engaged to offer the service do not have enough of the new gadgets. ECTS is part of reforms being fact-tracked under the Single Customs Territory introduced early this year.

KRA directed that all vehicles carrying local or transit cargo to be fitted with the new devices by April 30. Maiyo said the devices currently in the market are expensive and might affect the growth of their businesses.

“The installation cost of the device is Sh90,300 ($1,050), monthly subscription is Sh3,870 ($45) and each electronic seal cost Sh3,440 ($40),” he noted. 

To bring the cost down, Maiyo called on the taxman to contract more companies, possibly, to bring the number to over 50.

The delay in installation of the gadgets, Maiyo added has caused delay in delivery of cargo in the region and locally.

Vehicles targeted include trucks that deliver containerised cargo to Rwanda, Uganda, Kenya and South Sudan. Others are motor vehicles that also operate in the region.

The electronic device which has replaced security bond assists to monitor and get real time information on location, security and condition of cargo and assets.

Custom authorities in many parts of the world are currently grappling with the problem of significant tax loss, cargo theft and regulatory compliance.

KRA argues that the local market has been equally experiencing problems of counterfeit goods, some which are dumped by trucks, cleared at Mombasa port.

According to Kenya Association of Manufacturers (Kam) counterfeit goods cost the local economy more than Sh30 billion annually.

Capacity limitations

 East African Community countries aim at implementing electronic tracking of all cargo within the region. KRA Commissioner of Customs Beatrice Memo confirmed the exercise has been experiencing capacity limitations. 

The situation, she added in a phone interview last week is also instigated by the fact that majority of the engaged companies are yet to aggressively promote their services in the market.

“There has been an insinuation in the market that it is only Borderless Tracking System that has been offering the services. KRA has approved other four companies to offer the services. We urge transporters to seek services from the other firms as well to avoid delay at the port,” said Memo.

A number of drivers and clearing agents at Mombasa port have blamed Borderless Tracking Company (BTC) for delays in installing the devices.

BTC directors who visited The Standard newsroom last week concurred that there were installation delays but said plans are already in place to import more gadgets.

Number of vehicles

“There has been shortage of the gadgets in the local market due to increasing number of vehicles. However, we will ensure our orders are increased based on the new dynamics,” said Peter Echessah a director with BTC. He disclosed that they have been fitting between 160 and 220 vehicles every day compared to the market demand of between 400 and 600 vehicles every day. The intention is to fit between 300 and 350 devices daily.