Transporters Clash With KRA Over New Cargo Policies

The Kenya Transporters Association (KTA) has opposed attempts by the Kenya Revenue Authority to reintroduce rail haulage of cargo to the Naivasha Inland Container Depot (ICD), terming the move unlawful and unconstitutional.

In a press statement on Tuesday, February 10, KTA Chairman Newton Wang’oo said the association had taken note of the reports attributed to the KRA Commissioner General, suggesting plans to force importers serving neighbouring countries to clear cargo through the Naivasha ICD, in what the KRA says will ease congestion at the Mombasa port.

Wang’oo argues that the directive would violate free market principles and slow down the gains that have been made after President William Ruto abolished the policy in 2022. He notes that Ruto’s move to end the haulage restored market freedom and revitalised economic activity.

“It is therefore with deep concern that KTA has taken note of reports attributed to the Commissioner General of KRA suggesting an intention to compel importers, particularly those serving other countries, to use the Naivasha ICD under the pretext of decongesting the port of Mombasa,” the statement read.

“The Naivasha ICD lacks any defensible commercial or logical justification grounded in independent and credible feasibility analysis. No rational importer serving landlocked countries would voluntarily select Naivasha ICD as a clearance point,” it added.

The association’s statement comes after the KRA Commissioner General Humphrey Wattanga announced that the Naivasha ICD will be prioritised for long-haul cargo destined for Uganda, Rwanda, DRC and South Sudan. The Mombasa port, he noted, would now focus on short-haul traffic, especially in the country.

Wattanga argues that the decision followed a sharp rise in cargo volumes at Mombasa port, which he claimed has strained infrastructure and slowed the clearance process, as well as increased logistic costs for importers.

KTA in the statement acknowledged that congestion challenges exist at the port but attributed them to poor planning, vessel scheduling failures and difficulties in empty container evacuation. It said forcing transit cargo to Naivasha would not resolve these operational bottlenecks.

The association notes that any policy that forces importers to use a prescribed mode of transport or pay predetermined tariffs is unconstitutional and unlawful. The association maintained that the choice of clearance point and mode of transport rests solely with the cargo owner.

The transporters insisted they are not opposed to the Standard Gauge Railway (SGR) or rail transport in general. However, they rejected what they described as coercion, price-fixing and state-mandated allocation of cargo in a liberal economy.

They warned that any attempt to reintroduce forced rail haulage, whether directly or through administrative pressure or regulatory circulars, would violate constitutional provisions and existing court precedents.

The Naivasha ICD has had a history of executive directives, shifting between mandatory use to boost SGR and reversals to protect the coast region’s economy. 

In 2019, then President Uhuru Kenyatta directed that it be used to decongest Mombasa, a directive that was later reversed by his successor, William Ruto, in 2022, immediately after assuming office as president.