Big win for Nairobi traders as warehouse is launched
Nairobi-based traders won big after the launch of a container freight station (CFS) within the Nairobi Central Railway terminal by President Uhuru Kenyatta yesterday.
The CFS to be manned by Kenya Revenue Authority (KRA) will ease the cost of doing business by cutting off third party players from the supply chain and bringing goods closer to the consumers.
It will also go a long way towards ensuring importers who consolidate their goods at source will not pay deposits for containers but will only pay the 0.6 per cent on goods as required by Kenya Bureau of Standards.
“We are here to ensure that our businessmen, whether small or big won’t be inconvenienced at the Port of Mombasa, pay clearing agents, who sometimes disappear with their money,” said the president.
This will now see Kenya Railways (KR) transport consolidated containers to the CFS where KRA will verify them at their “Boma” shades, from where importers will pay taxes and cart away their goods.
Cargo pileups
In what is part of the government’s response to earlier complaints by small-scale traders after cargo pileups at container depots in May 2019, KRA unveiled this option as formula to address their concerns.
The pile ups last year had seen some 702 containers belonging to the small-scale traders being held by different agencies over issues including the owners not knowing the consolidators.
Clearing against imported goods won’t be agonisingly expensive and time consuming,” said National Treasury Cabinet Secretary Ukur Yatani, adding that the launch of the CFS will reduce the cost of doing business for traders by enabling them pick their “goods from the comfort of their homes in Nairobi as opposed to the Port City of Mombasa.
The Nairobi CFS will be followed by similar initiatives in Nanyuki, Nakuru, Kisumu and Malaba, bringing goods closer to pick up points.
“That business where you used to pay $1000 deposit (Sh109,000) for containers is no longer there because there will be a container that you will be required to pay for as it belongs to Kenya Railways and you will only be required to pay the required taxes,” said the president.
Closed circuit
Underscoring his desire to see small businesses not being harassed, President Uhuru directed the Inspector General of Police to ensure a closed circuit camera (CCTV) was installed at the facility where he could personally monitor what was going on.
“I want you IG to fix a CCTV camera here to monitor from my office whether you are harassing them,” he said, adding that he will not tolerate government officials engaging in business with their employer.
A road will be constructed from Muthurwa to the site, with traders operating the affected areas moved to alternative locations.
“This initiative coupled by the One-Stop Border Points have improved the flow of goods and services across our borders with considerable savings to traders,” said Yatani.
