•The Kenya Railways Corporation Transit Shed has been gazetted almost three months after its launch by President Uhuru Kenyatta, in November last year.
•It is expected to serve more than 7,500 small scale traders in Nairobi and its environs , making it easier to collect their goods.
Image: FILE
Imported consolidated cargo destined for Nairobi will from Monday, February 8, be cleared at the Kenya Railways Corporation Transit Shed, Kenya Revenue Authority has announced.
This follows the gazettement of the Boma Line shed, launched by President Uhuru Kenyatta last November.
"Effective Monday February 8, 2021, all consolidated cargo imported by sea and transported to Nairobi through the Standard Gauge Railway, will be de-consolidated, cleared, and collected by the owners at the Kenya Railways Corporation Transit Shed," acting Commissioner, Customs and Border Control, Pamela Ahago said in a statement on Wednesday.
The shed is expected to serve more than 7,500 small scale traders in Nairobi and its environs , making it easier to collect their goods.
Small traders have traditionally consolidated cargo where an individual is not able to fill a container with their own goods.
In this type of transport, assorted cargo is packed in one container for shipment, with each trader collecting their goods at the end destination, where the container is stripped or de-consolidated.
Food, personal care products, electronics, clothing, home fittings and furnitures constitute most of the consolidated cargo coming into Kenya. China is the main source.
Cargo designated for other parts of the country will be de-consolidated at other designated facilities, KRA said, with ICDs at Nairobi and Naivasha playing a key role.
The small traders will now not pay the $1000 (about Sh109,850 ) charged as container deposits, which will subsequently reduce the cost of doing business.
"Establishment of the Boma Line is part of initiatives to bring services closer to taxpayers and facilitate them to conduct their business effectively and efficiently,"Ahago said.
Cargo for the SMEs will be transported from Kilindini Port to ICDN, Embakasi, and later trans-shipped to the transit shed using Metre Gauge Railway (MGR).
The verification by customs officers and other government agencies will be done on these specific single goods as opposed to the typical verification of a whole container.
"This therefore means that cargo verification process will be simplified and there will be a great improvement on the verification turnaround time," she said.
Traders with goods of customs value of $10,000 (Sh1 million ) or less will be allowed to make an import declaration on a simplified Mobile App or a direct assessment entry, while those with goods of customs value above the amount will clear through a registered clearing agent in the customs system.
The shed will accommodate approximately 100-40 foot containers per month raking in an approximate revenue of Sh110 million.
The number of containers being cleared at the facility is later expected to increase to approximately 300 containers per month during the post Covid period.
This will enable the country to collect revenue of approximately Sh1 billion,according to KRA estimates, with the facility planned to operate on a 24- hours basis during the post Covid-19 period.
Small traders are counting on the new transit shed to help weed out unscrupulous importers and state official, speed up cargo clearance and collection and cut down huge demurrage charges incurred for delayed return of empty containers.
We have been having people use our containers to consolidate goods. The new shed is going to separate legit business people and illegal tradersNairobi Importers and Small Traders Association organising secretary Ann Nyokabi