Mombasa port operations face disruption as cargo transporters down tools

By  Anthony Kitimo

Correspondent

Cargo operations at the Port of Mombasa and along the Northern Corridor face potential disruption after more than 5,000 transporters announced suspension of cargo loading beginning Thursday in protest against additional charges introduced by private electronic cargo tracking seal providers.

The boycott comes at a critical time when the Mombasa port is experiencing increased vessel traffic, with 44 ships expected to call over the next 14 days, raising concerns that a slowdown in cargo evacuation could worsen congestion, delay deliveries and increase the cost of doing business.

The Kenya Transporters Association (KTA) on Wednesday called on its members to suspend loading cargo requiring the use of user-owned multi-vendor Regional Electronic Cargo Tracking System (RECTS) seals until the Kenya Revenue Authority (KRA) establishes an acceptable mechanism for recovering the additional costs.

Transporters said the $350-$450 (Sh45,483 to Sh58,478) depending on the service provider charged per seal is exorbitant and cannot be passed to transporters.

The association's directive could affect thousands of containers destined for local markets and landlocked countries that depend on the Port of Mombasa as their main trade gateway.

At least 3,500 trucks collect containers from the port daily, meaning a sustained suspension could quickly create a backlog of cargo at the port, container freight stations (CFSs) and inland container depots, while disrupting deliveries to Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo (DRC).

In an advisory issued on November 4, KTA chairman Newton Wang’oo said the association strongly opposed the decision by KRA to transfer the cost of mandatory customs cargo monitoring to private transporters.

He described the additional charges as unfair, commercially unsustainable and legally questionable, arguing that transporters should not be forced to shoulder the cost of a government-mandated customs compliance system without an approved reimbursement arrangement.

The association directed members to immediately suspend loading cargo requiring the new electronic seals until an acceptable cost-recovery framework is established.

“Transporters have also been advised against purchasing, leasing or entering into commercial arrangements with seal providers until KRA formally approves a mechanism allowing them to recover the costs through offsets against taxes payable,” Mr Wang’oo said.

KTA said the additional financial burden was being imposed unilaterally despite repeated engagements with the tax authority, which has yet to establish a framework allowing transporters to recover the expenses incurred in complying with the new requirements.
"The unilateral imposition of additional costs is unfair, commercially unsustainable and raises serious legal concerns," the association said.

The dispute exposes growing tensions between transport operators and the tax authority over the financial implications of the new cargo monitoring arrangement, which has transferred the procurement and management of electronic seals from the government to private service providers.

While KTA maintained that it supports customs compliance and effective monitoring of transit cargo, it said the industry would not accept additional government-related costs being transferred to private businesses without a clear mechanism for compensation.

The association also announced that it was seeking urgent legal advice and would pursue all appropriate lawful remedies, including court proceedings where necessary, to protect the interests of its members.

"The sustainability of our industry is paramount," Mr Wang’oo said, urging transporters to remain united and exercise commercial discipline as the association engages KRA.

The threatened industrial action comes as the Port of Mombasa prepares to handle a significant volume of shipping traffic over the next two weeks.

The port is expected to receive 44 vessels comprising 22 container ships, 11 conventional cargo vessels, five car carriers and six oil tankers.

Meanwhile, the Port of Lamu is projected to receive nine vessels, including seven container ships and two general cargo vessels, bringing the combined number of expected vessel calls at the two ports to 53.

The increase in maritime traffic is expected to put additional pressure on cargo handling operations, particularly if the dispute between transporters and seal providers affects the evacuation of containers from Mombasa.

The port is already facing operational challenges, including pressure on cargo handling facilities and inadequate capacity at some container freight stations, raising fears that any slowdown in truck movement could worsen congestion.

The Northern Corridor, which handles substantial volumes of regional transit cargo, could also experience delays if transporters maintain their position.

The corridor is a major trade route linking the Port of Mombasa to the hinterland markets of East and Central Africa, making the smooth movement of trucks critical to regional supply chains.

The latest dispute follows KRA's implementation of a Multi-Vendor User-Owned Electronic Seals Framework for RECTS, which became fully operational on October 26, 2026.

Under the arrangement, the authority approved 15 private companies to supply electronic cargo tracking devices and related services, ending the previous system in which KRA provided government-owned seals through a single-provider arrangement.

The framework covers electronic seals used to monitor both dry and wet cargo, including electronic fuel tracking devices integrated into the RECTS platform.

In a public notice issued on September 11, KRA said government-owned electronic seals would be gradually withdrawn, with the transition scheduled for completion by October 26.

After the deadline, goods moving under customs control would be required to use tracking devices supplied by approved private vendors.

The authority said the transition was intended to improve access to tracking devices, increase competition among service providers and respond to changing business requirements while strengthening surveillance of goods moving under customs control.

The new system allows importers, exporters, transporters, clearing and forwarding agents and bonded warehouse operators to select their preferred providers and enter into direct commercial agreements.

The electronic seals are integrated into RECTS, enabling real-time monitoring of trucks, detection of route deviations and alerts in cases of tampering or possible diversion of cargo.

The system is intended to strengthen cargo security, reduce diversion of transit goods and improve customs enforcement across regional trade corridors.

However, transporters argue that although they support the objectives of the tracking system, the costs associated with mandatory government monitoring should not be imposed on them without consultations and an agreed reimbursement framework.

The disagreement now places KRA under pressure to engage the transport industry and resolve the cost-sharing question before the dispute escalates into a wider disruption of cargo movement.

A prolonged standoff could undermine the competitiveness of Mombasa as a regional logistics hub, particularly as neighbouring ports compete for transit cargo destined for landlocked economies.

Those dealing with importing and exporting goods through Kenya, the interruption of truck operations will translate into longer cargo clearance times, higher logistics expenses and uncertainty in delivery schedules.

The outcome of negotiations between KRA and transporters will therefore be critical in determining whether the new electronic cargo tracking framework can operate without disrupting the regional supply chains that depend on the Port of Mombasa.