“Kenya Online Cargo Clearance Fee is a Barrier for Export Boost,” Says KAM

Importers are now required to pay Sh5,000 annual fee besides value added tax (VAT) with the introduced user charges by Kenya Trade Agency (Kentrade), a move that has been termed among the  leading hurdles of the government’s effort to boost employment and exports through the manufacturing sector by the Kenya Association of Manufacturers (KAM).

The Kenya TradeNet System which is a national electronic single window for lodging international trade documents, was launched in 2012 with an aim to eliminated need to seek clearance from State agencies.

Since its flag off the system was fees free up to last week when the Kenya Trade Agency (Kentrade) introduced user charges.

In addition, to the Sh5,000, the user will be required to pay Sh750 for a unique shipment reference number plus VAT and an arrival notice fee per vessel of Sh7,500, plus VAT.

“Introducing charges on importers using the platform only serves to increase input costs that will be passed on to consumers via price increments,” said KAM chief executive Phyllis Wakiaga, adding that “these charges only serve to make goods uncompetitive in a regional market shared with competitors in Uganda and Tanzania whose governments do not charge for use of single window systems.”

Earlier the Kentrade CEO, Amos Wangora, recommended the system saying, “it has simplified trade procedures and processes, resulting in substantial cost savings,” while the economy was able to save Sh2.5 billion in its first five years of roll-out alone.

KAM noted that most manufacturers importing raw materials absorb numerous charges that make them start production with an unnecessary 13 percent cost disadvantage compared to our neighboring countries within the EAC and that the fee will make them less competitive.