Transporters Call Out KRA Over Unfair Penalties

The Kenya Transporters Association (KTA) has castigated the Kenya Revenue Authority (KRA) over the management of Regional Electronic Cargo Tracking System (RECTS) seals.          

In a press statement dated July 15, 2024, KTA alleged that KRA’s handling of RECTS seals was causing undue challenges and financial strain on transporters across the country.

“While the East African Community Customs Management Act assigns responsibility for the seals to transporters, the KRA’s current practices create unfair financial burdens to transporters, even in situations beyond the transporters control and in absence of any negligence,” part of the statement read.

KTA Chairman Newton Wang’oo stated several instances of what the association describes as unfair practices and a lack of transparency by the KRA.

Grievances from Transporters 

One of the primary complaints is the substantial discrepancy between the market price of a RECTS seal, approximately Ksh20,000, and the penalty imposed by KRA for a lost seal, which stands at a staggering about Ksh300,000.

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The association further outlined multiple scenarios where transporters are unfairly penalized, even in situations beyond their control.

For instance, transporters are held liable for lost seals due to unforeseen events such as accidents, robberies, or vehicle destruction.

KTA cited cases where transporters were fined even when drivers had lost their lives in fatal accidents, with KRA allegedly hiding behind regulations to impose these penalties.

Another significant concern is the delay in tagging at ports or Container Freight Stations (CFSs) due to a lack of sufficient seals and manpower.

Additionally, KTA pointed out that KRA is responsible for attaching and removing seals.

KTA Demands

In response to these issues, KTA has proposed four solutions aimed at ensuring fairness and transparency in the implementation of the RECTS program.

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Firstly, investigating the substantial price difference between the market cost of a seal and the penalty imposed for losing one.

Secondly, developing a system for promptly notifying transporters of missing seals, allowing them to investigate and minimize potential losses.

Thirdly, reviewing regulations to account for situations where transporter negligence is demonstrably absent, such as accidents or theft.

Finally, increasing the number of seals and sealing manpower, including empowering KRA Border Control officers to seal at CFSs.

KTA further called for a collaborative approach between KRA and transporters to foster cooperation and ultimately benefit the Kenyan economy.

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