The Kenya Transporters Association (KTA) is seeking answers from the Kenya Revenue Authority (KRA) regarding the whereabouts of 13,000 electronic cargo tracking seals previously procured using taxpayers' money. KTA chairman Newton Wang'oo stated that the new multi-vendor system for cargo tracking has transferred financial responsibility from the government to transporters. The association is challenging the tax authority to explain how the publicly funded seals became unavailable, forcing trucking companies to purchase or lease new devices from 15 private service providers.
Under the new Regional Electronic Cargo Tracking System (RECTS) framework, transporters, importers, and other cargo stakeholders are required to obtain electronic seals from 15 approved private vendors. The devices cost between Sh45,000 and Sh65,000, while service providers charge monthly maintenance fees of about Sh3,900 per seal. KTA argues that the government should not transfer its responsibility for customs monitoring and enforcement to transporters without adequate legal justification. The association maintains that customs enforcement remains a statutory obligation of the State.
The dispute follows the introduction of the multi-vendor RECTS framework, which ended KRA's previous single-supplier arrangement and opened the market to 15 approved companies providing electronic cargo tracking devices. The system aims to improve cargo monitoring by allowing stakeholders to obtain seals from different providers. However, transporters insist that opening the system to multiple providers should not translate into additional compulsory expenses for businesses already struggling with high fuel, maintenance, and operational costs.
KTA has urged members to maintain cargo operations while resisting what it considers an unjustified transfer of government responsibilities to private businesses. The association is pursuing legal action to challenge what it considers an unlawful transfer of government responsibilities to private businesses. KTA intends to seek judicial intervention to protect transporters from additional costs that could undermine the financial sustainability of the industry.
The disagreement comes at a critical time for the Port of Mombasa and the Northern Corridor, which serves landlocked economies including Uganda, Rwanda, Burundi, South Sudan, and the Democratic Republic of Congo. The corridor is a major trade route for imports and exports serving millions of consumers and businesses across the region, making the smooth movement of cargo essential to regional economic activity.
KRA Commissioner for Customs and Border Control Dr Lilian Nyawanda said the authority is reviewing concerns raised by transporters and has forwarded their requests to the relevant principal for consideration. The association warned that the rush to obtain tracking devices could create opportunities for corruption, with some operators potentially resorting to bribery to avoid delays and keep their trucks moving.
KTA has expressed concern that commercial pressure could encourage individual transporters to abandon the collective position and negotiate separate arrangements with vendors for fear of losing business or facing victimisation. The association urged members to stand together and resist any attempt to compel them to purchase, lease, or use privately owned Multi-Vendor RECTS seals at their own expense.
Key points
- The Kenya Transporters Association is demanding answers from KRA over 13,000 missing electronic cargo tracking seals.
- The new multi-vendor system for cargo tracking has transferred financial responsibility from the government to transporters.
- The dispute could increase transportation costs, delay deliveries, and affect the competitiveness of Mombasa against other regional ports.
