When truck drivers downed their tools last week in Malaba creating kilometres of stationary traffic, their frustrations highlighted the challenges of plying the busy Kenya-Uganda corridor — a key regional trade route.
The problem, according to the drivers, is that besides the Uganda Revenue Authority dragging its feet on clearance procedures, it is impounding loaded trucks demanding taxes that drivers aren’t responsible for.
Cost of strike
The strike by the more than 1,000 drivers has costthe region millions of dollars, with factories in Uganda, Rwanda, Burundi and Sudan already feeling the pinch due to delayed deliveries of raw materials, businessmen said.
“The irregularities began about two months ago. Clearing agents would have the consignments cleared at the Kenya border post only for the truck to get to the other side and be impounded because of missing paperwork and unpaid taxes,” said Shiundu Said, who has been driving past the Malaba border for the past 15 years.
The strike by Kenyan truck drivers was in protest of their colleagues being held at the Ugandan side of the border, where it is reported that they are fined over taxes instead of officials taking up the matter with consignment owners through their clearing agents.
Julius Muchiri, another truck driver parked at the Malaba border, claimed, “URA can fault you for goods you transported three or four months ago and demand the taxes and other charges you supposedly avoided paying. As a driver, I do my job without even knowing what is in the truck, so it is impossible for me to know who was to pay the taxes.”
Truck drivers who spend a whole day travelling from Mombasa to Malaba are incensed by the two to three day wait at the Malaba border parking to get clearance to proceed to Kampala.
“I used to do about six trips to Kampala a month, but for the past month, I’ve only been able to do three and that will certainly affect my ability to pay school fees for my children,” added Mr Muchiri.
But according to Alex Rubanga, URA Supervisor at Busia Customs, Uganda, it should take less than 12 hours to clear a compliant truck.
Cost to consumer
The impact of these delays in such major transport corridors is felt by the driver, truck and consignment owners. The costs are then transferred down to the consumer.
As part of its mandate to promote regional trade and economic intergration in the East African region, TradeMark East Africa is looking at the implementation of the one stop border posts on all borders.
The establishment of one stop border posts is expected to halve the transit time and related costs by combining two stops into one and consolidating functions in a shared workspace.
The Chirundu one stop border posts between Zimbabwe and Zambia, for instance, is said to have resulted in reduced transactions costs, increased revenue, reduction in waiting time, reduction in duplication of efforts and strengthening of political ties between the two nations.
Having an one stop border post at the Kenya-Uganda trade corridors therefore would be in the best interest of the traders, transporters and governments.
“Having a Kenya Revenue Authority office with a URA one on either side of the border, will reduce the time and cost of transport for shippers and eventually prices of goods to consumers,” said Sjoerd Visser, a consultant with TradeMark East Africa.
