New rule puts KRA on the defensive

07 Jul '05

1 min read

High revenue losses have been feared in case an order against a new computer system for customs is not lifted, Kenya Revenue Authority (KRA) informed yesterday.

Drawn in a legal battle, the absence of new computerised system has been stalled from implementation and Mr Paul Matuku, an official of KRA conveyed to Lady Justice Joyce Khaminwa, revenue could not be collected and that may cause heavy losses for the Government.

The new system was supposed to have been implemented on June 30, 2005.

The judicial review application by clearing agents would cripple customs operations as no imports or export documents could be processed without the new system.

Brown Ondego, Managing Director, KRA admitted of port operations getting adversely affected following the delay in processing import documents, but said KPA supported the new KRA initiative.

"The KRA computerisation system is in line with KPA's efforts to modernise cargo clearance procedures and is in line with KPA's goal of making Mombasa port rated among the best in the world by 2010, he said.

The clearing and forwarding agents had no option but to back the new customs reforms aimed at enhancing efficiency and transparency in cargo clearance, he added.

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