1,200 Kenyans to lose jobs as KRA shuts container freight stations

The Kenya Revenue Authority has closed down two container freight stations in Mombasa.

On January 21, the Kenya Ports Authority (KPA) wrote brief letters suspending Portside Freight Terminal and Autoports Freight Terminal from receiving containers from the Port of Mombasa without stating the reason. The two stations employ about 1,200 people and jointly handle goods worth over Sh1 billion annually.

“It has been decided that nomination of containers to your container freight stations be suspended with immediate effect,” KPA Managing Director Gichiri Ndua said in the letters.

On Monday Justice Dorcas Chepkwony suspended KPA’s directive and ordered it to file its papers explaining its actions within 21 days. But yesterday operations ground to a halt at the two stations when KRA officials descended on the premises and sealed the gates.

Containers freights stations (CFS), also known as inland ports, receive import and export goods on behalf of KPA on contract from the latter. There are about 24 CFSs in Kenya and the majority are in Mombasa.

Yesterday, the Container Freight Stations Association of Kenya released a statement questioning the closure saying that it costs “not less than two billion shillings” to establish a CFS. The association warned that withdrawal of business from the two stations “creates a frightening atmosphere of uncertainty in the carrying out of business within this particular sector and industry in general”.