TRADE

Kenya asked to post tax officials to Tanzania to pre-clear goods

Tanzania has already deployed TRA officials to Mombasa and Nairobi

In Summary

•Kenya doing destination clearance of goods at Horohoro-Lunga Lunga One-stop Stop Border Point leads to delays and long queues of cargo trucks to Kenya.

Tanzania is plotting one-stop border operations at the Horohoro-Lunga Lunga One-Stop Border Post. 

Trucks awaiting clearance at Horohoro-Lunga Longa One Stop Border Point
Trucks awaiting clearance at Horohoro-Lunga Longa One Stop Border Point
Image: HANDOUT

The East Africa Business Council wants Kenya Revenue Authority (KRA) officials to be posted to the key cities in Tanzania to facilitate the pre-arrival clearances to reduce traffic queues at border points.

EABC chief executive officer John Bosco Kalisa said Kenya doing destination clearance of goods at Horohoro-Lunga Lunga One-stop Stop Border Point leads to delays and long queues of cargo trucks to Kenya.

Kalisa spoke at the EABC Trade Facilitation Forum at Horohoro-Lunga Lunga OSBP.

Tanzania has already posted Tanzania Revenue Authority (TRA) officials in Mombasa and Nairobi to facilitate the pre-arrival clearance of goods under the Single Customs Territory framework.

Kenya’s exports to Tanzania for the first quarter January-March 2022 stood at $139.42 million while imports at  $118.6 million.  

“The pilot running of one-stop border operations at the Horohoro-Lunga Lunga One-Stop Border Post has eased the free movement of goods and persons between Kenya and Tanzania.”

He added that the number of trucks entering Kenya from Tanzania has increased to 150 per day while 80 cross over into Tanzania daily. 

Tanzania's trade volume increase is attributed to coal and maize exports.

Sadik Ndoro, chairman of Clearing and Forwarding Associations appealed for the removal of the Single Tax System levy charged on Kenyan trucks entering Tanzania. 

He appealed to the two governments to waive Covid-19 mandatory testing for fully vaccinated passengers.

Juma Wahungu from the Ministry of EAC and Regional Development Kenya commended EABC for rolling out dialogues at the border with the business community in order to resolve trade barriers.

Imports for Tanzania increased to 3300 trucks per month from 1500 trucks while exports stand at 1000 trucks following the elimination of Non-Tariff barriers.

He said a joint border performance charter and instituting a green lane for EAC originating goods will enhance trade facilitation and boost intra-EAC trade to 40 per cent.

In 2021 Kenya’s exports to Tanzania hit $409.7million in 2021 from $294.9 million in 2020 while Kenya’s imports from Tanzania stood at  $489.8million in 2021 and $258.3million in 2020.  

Traders called for the formation of a committee to oversee the acquittal of motorcycles held at the police stations, Seminars on EAC export procedures and access to markets.

The forum was attended by over 50 delegates composed of officials from the Ministry of EAC Affairs, trade facilitation agencies, importers, exporters, transporters & freight forwarders and women cross-border traders.