A sudden breakdown in the Kenya Revenue Authority (KRA) system has brought operations at the Port of Mombasa to a standstill, causing significant financial losses.
Kenya’s tea sector, which typically generates around $25 million (Sh3.2 billion) per week by exporting roughly 150 tea containers daily, has been particularly affected, with a backlog of 750 containers now stranded at the port.
Exporters are incurring heavy losses from mounting demurrage and logistics expenses due to the five-day system outage.
The EastAfrican reports that disruptions in the KRA’s Integrated Customs Management System (iCMS) have slowed the entire supply chain, delaying goods from entry to final delivery.
This breakdown is affecting not only the tea industry but other trade sectors reliant on the Mombasa port, East Africa’s largest and a critical transit point for Uganda, Rwanda, South Sudan, and northern Tanzania.
The KRA has requested traders to hold off on lodging documents through the system until further notice, adding to uncertainties since no resolution timeline has been set.
Arthur Sewe, Chairman of the East African Tea Trade Association (EATTA), and Managing Director George Omuga warned that Mombasa risks losing its regional trade market share if delays continue.
“An alternative cargo clearance system as a fallback is necessary to avoid these interruptions,” said Omuga, who also called on the government to implement monthly billing to alleviate some financial strain on traders.
This incident mirrors a similar iCMS failure in February 2024, which halted cargo clearing for three days at major Kenyan entry points, including Mombasa, Jomo Kenyatta International Airport (JKIA), and inland container depots. That earlier disruption also led to significant extra costs and delays for traders.
Introduced in 2019 at a cost of $8.45 million (Sh1.2 billion), the iCMS was intended to replace the outdated Simba system, increase efficiency, and prevent tax evasion.
However, repeated breakdowns are highlighting the need for contingency measures to maintain trade flow in Kenya’s critical logistics hubs.
