Importers are up in arms over a new directive by the Kenya Revenue Authority (KRA) requiring goods to be cleared at designated Container Freight Stations (CFSs), saying the move limits their freedom to choose where and how to clear their cargo. Kenya Ports Authority said Saturday the importers had been ordered to nominate the CFSs to be used. “To Further optimize the available space and maintain seamless cargo flow domestic cargo will be transferred to nominated Container Freight Stations (CFS), creating additional room within the port while ensuring cargo remains secure and easily accessible,” a statement said.

The importers maintain that they have a right to determine where their goods are cleared once they have met all customs requirements, and are opposing what they describe as an attempt to compel them to use particular CFSs. They have threatened to move to court to oppose the new directive. The directive has also sparked tension between KRA and the Kenya Ports Authority (KPA), with sources indicating that the revenue agency has asked KPA to ensure that imported goods are moved to CFSs for clearance rather than allowing individual importers to make alternative arrangements.

KPA officials are understood to be under pressure to implement the directive despite concerns raised by stakeholders over its implications for competition, costs and the freedom of importers to choose service providers.

The dispute intensified after KRA officials pushed for greater control over where cargo is cleared, prompting importers and industry players to question the basis and implications of the new arrangement.

Some importers have alleged that senior KRA officials have interests in companies operating CFSs and are therefore pushing for cargo to be channelled to particular facilities.

The controversy came into focus on Friday when KPA Chief Executive Officer Capt William Ruto met KRA Commissioner General Mohamed Adan with the two sides discussing the contentious directive and seeking a way forward.

The meeting is understood to have focused on how the new clearance arrangement would be implemented while addressing concerns raised by importers and other stakeholders.

Importers argue that forcing cargo to specific CFSs could increase their costs and restrict competition in the cargo clearance sector.

They are now demanding clarity from the two agencies on the legal basis of the directive and assurances that they will retain the right to choose where their goods are cleared.

The dispute comes amid ongoing efforts by the government to streamline cargo clearance and improve efficiency at the Port of Mombasa, with KRA and KPA playing key roles in the movement and clearance of imported goods. The two agencies say they have advanced the implementation of key operational reforms at the region’s largest and busiest port to boost efficiency and improve trade facilitation.

During the bi-weekly port community meeting at the Port of Mombasa, Ruto and Adan engaged stakeholders on key operational challenges that have hampered smooth cargo processing and evacuation.

They announced several initiatives focused on digitalisation, infrastructure development and cargo clearance to ease persistent bottlenecks and improve port productivity.

The ongoing upgrade of port systems will provide stakeholders with more reliable, integrated, and efficient digital services. The enhanced systems are expected to improve information sharing, increase transparency, and enable faster decision-making across the logistics value chain.

Automation is among the key initiatives underway, with KPA introducing Smart Gates at Gate 24 to reduce human intervention and enhance cargo security at the port of Mombasa.

On infrastructure development, KPA reaffirmed its commitment to expanding the port's capacity to accommodate growing trade volumes with the construction of berth 19B, container yard at berth 23 among other projects currently ongoing.

KRA has also increased its workforce at the port and introduced three shifts to support 24/7 gate operations in line with KPA’s operations.

The KPA CEO and the KRA Commissioner General underscored the importance of continued collaboration between government agencies and private sector stakeholders in addressing operational challenges.

They reaffirmed their commitment to implementing practical solutions that enhance efficiency, reduce the cost of doing business, and position the Port of Mombasa as a leading regional gateway for trade.