Transporters suspend loading of cargo over KRA's new customs monitoring costs

The Kenya Transporters Association (KTA) has called on transporters to suspend the loading of cargo requiring user-owned multi-vendor RECTS seals in protest against a Kenya Revenue Authority (KRA) decision to transfer the cost of mandatory customs cargo monitoring to transporters.

In an advisory dated November 4, 2026, the association strongly opposed the proposed cost arrangement, describing it as unfair, commercially unsustainable and legally questionable.

KTA Chairman Newton Wang’oo said the decision would impose additional financial obligations on transporters without an acceptable framework for recovering the costs.

The association said it had engaged KRA repeatedly over the matter, but the authority had yet to establish an acceptable mechanism for compensating transporters.

"The Kenya Transporters Association Ltd (KTA) strongly opposes the Kenya Revenue Authority's (KRA) decision to transfer the cost of mandatory customs cargo monitoring to transporters," the advisory stated.

"This unilateral imposition of additional costs is unfair, commercially unsustainable and raises serious legal concerns."

The association has consequently directed all transporters to immediately suspend loading cargo requiring user-owned multi-vendor RECTS seals until the dispute is resolved.

It has also advised transporters against purchasing, leasing or entering into commercial arrangements with seal providers until KRA formally approves a mechanism for recovering the expenses.

According to KTA, the proposed arrangement should allow transporters to recover the additional costs through offsets against taxes payable.

"Transporters are further advised not to purchase, lease or enter into commercial arrangements with seal providers until KRA formally approves full recovery of these costs through offsets against taxes payable," the association said.

The dispute raises concerns about the potential financial implications of the customs monitoring requirements on transport companies operating along the Northern Corridor.

KTA warned that the additional costs could undermine the competitiveness of Kenya's transport and logistics sector, particularly its position as a regional transit hub.

The Northern Corridor is a major transport route serving Kenya and several landlocked countries in East and Central Africa.

The association said the increased financial burden could weaken the competitiveness of transporters and affect the country's position in regional trade.

Beyond the suspension directive, KTA announced that it was considering legal action against the tax authority.

The association said it was seeking urgent legal advice and would pursue all appropriate lawful remedies, including court proceedings where necessary, to protect the interests of transporters.

"KTA is seeking urgent legal advice and will pursue all appropriate lawful remedies, including legal proceedings where necessary, to protect transporters' interests," the statement added.

However, the association clarified that it supports customs compliance and effective cargo monitoring, insisting that its objection was specifically directed at transferring the financial burden of mandatory government customs monitoring to transporters without an approved cost-recovery mechanism.

"KTA supports customs compliance and effective cargo monitoring but categorically rejects the transfer of mandatory government customs monitoring costs to transporters without an approved cost-recovery mechanism," it stated.

The association called on transporters to remain united, exercise commercial discipline and support its collective position as engagements over the matter continue.

"The sustainability of our industry is paramount!" Wang’oo said.

The advisory did not specify the total additional costs individual transporters are expected to incur or indicate whether KRA has formally responded to the association's latest position.

KTA is a business association representing road transporters. It says its mandate includes articulating industry challenges and advancing sustainable, competitive road freight services in Kenya, East Africa, and beyond.