The Kenya Transporters Association (KTA) has accused the Kenya Revenue Authority (KRA) of unfairly demanding taxes and duties on goods that are stolen while still under customs control.
In a strongly worded advisory dated February 20, the KTA argued that transporters were being unfairly punished for crimes that they did not commit.
The complaint by KTA arises from eight reported cases of stolen coffee within only two months, a worrying trend since coffee is one of Kenya’s top export earnings. Coffee is highly valued in markets across the United States, Europe, and Asia, fetching premium prices at auction due to its quality.
In essence, KTA says that when theft occurs prior to the official clearance of goods, KRA impounds the vehicle and sends a demand notice to the transporter demanding that he or she pays customs duties and taxes on goods that were not delivered.
In addition, transporters are reportedly being forced by owners of goods to pay for the stolen goods, a situation that is leaving transporters squeezed between KRA and owners of goods.
The KTA says that the situation arises from the East African Community Customs Management Act, 2004, which automatically imposes liability on road transporters for goods that are lost prior to customs clearance, regardless of who is at fault.
“This framework is fundamentally unfair, as transporters are victims – not perpetrators – of criminal theft and accidents,” the association said.
The transporters claim that the losses are devastating, especially since one container can carry goods worth tens of millions of shillings.
In order to mitigate the risk of theft, the KTA has also asked cargo owners to provide security escorts for high-value goods and insurance cover with written confirmation provided to the transporter.
In other measures to ensure safety, the association also suggested that night travel be avoided if possible, containers be parked only in secure areas authorized by the authorities, and that high-value goods be transported in convoys along major transport corridors.
In other issues, the KTA also brought up the issue of low transport rates. The association claims that the current average of Sh116,000 per container along the Kampala-Mombasa route is not commensurate with the risks involved in transporting goods worth between Sh10.3 million and Sh19 million per container.
The association is now suggesting new minimum rates of Sh258,000 for high-value goods such as coffee and cocoa, and Sh161,000 for lower-value goods. It said rates on other routes should be guided by distance, cargo value and weight to reflect the real operational and financial risks faced by transporters.
The dispute now adds fresh tension between transport operators and the tax authority, even as cargo theft continues to threaten one of Kenya’s most important export chains
