KRA blocked from using new cargo clearance system

The High Court has stopped Kenya Revenue Authority from introducing a new cargo clearance system at the port of Mombasa. 

The taxman was ordered to stop implementing the Centralisation of Head Verification Officers (CHVO) because it failed to conduct public participation. 

Justice Julius Ng’arng’ar noted that public participation is a necessary constitutional imperative. 

“It is trite fact and admitted by the respondents that public participation was not done in respect to the changes effected by the respondents,” he ruled. 

In the ruling delivered on September 23, Justice Ng’arng’ar issued a conservatory order to stop KRA and the Commissioner of Customs and Border Control from further operationalization of the new system saying it was fundamentally flawed and in violation of the law.  

This followed a petition filed by Mohamed Samow who argued that KRA and the Commissioner of Customs and Border Control failed to accord members of the public, importers and exporters the right to participate in the process of changing clearance of goods. 

In the petition dated August 2, 2024, Samow through Omwenga Advocates said the respondents introduced the new system for purposes of the="https://www.standardmedia.co.ke/business/national/article/2001482044/how-kra-kpa-will-work-together-to-increase-revenue-collection-at-the-port"> cargo clearance process < without public participation which had adversely affected stakeholders. 

The petitioner noted that in July, the respondents tried to introduce stakeholders’ participation but this allegedly left out major stakeholders and interested parties because no public notice was published and that no single public forum was held. 

Samow argued that the new system caused massive delays, demurrage and storage charges, increased the time frame for the release of goods, increased clearance cost, tariffs and barriers. He also argued that the system was cumbersome and lacked transparency, accountability, and efficiency.