On Wednesday, November 21, 2018, the Kenya Revenue Authority (KRA) said it would auction more than 100 owners’ 568 vehicles that have remained at the Port of Mombasa beyond the allowed period, in a move aimed at easing congestion at the busy customs hub.
In a gazette notice, the tax agency said the affected owners had 30 days to clear the vehicles or lose them to public auction. KRA chief manager for Port Operations Joseph Kaguru also invited prospective buyers to inspect the goods on 17 and 18 December before the sale.
“Notice is given that unless the goods are entered and removed from the custody of the Customs Warehouse Keeper, Kilindini within 30 days of this notice, they will be sold by public auction on 19th December, 2018,” Mr Kaguru said.
The vehicles on the list range from high-end models such as Mercedes Benz, Toyota Land Cruiser and Toyota Prado to lower-value units including Toyota Probox. One of the vehicles identified for auction is a Toyota Prado imported in the name of Jesus is Alive Ministries, the church run by bishop and politician Margaret Wanjiru.
KRA said 370 of the vehicles arrived in Mombasa early in 2018, leaving them exposed to months of demurrage charges. Jan Africa Investments, a second-hand car supplier, had 49 vehicles on the auction list, most of them imported in July.
Other firms with at least five vehicles marked for sale included Autobox Motors, Zain Trading, Jan Japan, Beru Trading and Nakuru-based Rift Cars.
The planned auction came as KRA stepped up cooperation with the Kenya Bureau of Standards (Kebs) and the Anti-Counterfeit Agency in efforts to curb tax evasion and block illicit imports. Importers had complained in recent months about delays at the port, but KRA said it tightened inspection procedures from October 1 to align with legal notice number 127 of June 19, 2018.
Under that notice, imported goods must be verified by an inspection body appointed by Kebs in the country of origin before shipment. KRA also said that where goods arrive without a Certificate of Conformity, they would be verified at the port after the importer pays an inspection fee equal to 20 percent of the approved customs value.
The auction drive was not limited to vehicles. KRA said assorted goods belonging to more than 300 other individuals and firms had also been advertised as it sought to clear space in its warehouses.
Kenya Power was among the companies affected, with goods held in 21 containers and facing auction if not cleared within the notice period. The items included 4,060 kilogrammes of material for the Thika Road sub-station, a feeder protection system, a busbar protection transformer and a metering system.
KRA said it had collected at least Sh62.2 million in January from its first public auction of the year, which involved 53 assorted goods including vehicles, household items and construction materials. The agency said reserve prices are fixed in advance, and bidders must pay at least 25 percent of the value in cash or by banker’s cheque when the hammer falls.
