South Sudan cargo piles up at Mombasa port over levy row

Cargo bound for South Sudan is stacking up at the Port of Mombasa, intensifying a dispute over a recently imposed mandatory tax.

The deadlock stems from Kenya customs agents' refusal to acknowledge the newly introduced Electronic Cargo Tracking Note (ECTN) mandated by the South Sudan Revenue Authority Commission.

The Kenya International Freight and Warehouse Association (KIFWA) issued a statement on Saturday, attributing the backlog to the implementation of the new levy.

According to KIFWA Chairman Roy Mwanthi, over 1,000 containers designated for South Sudan remain stranded at the port, raising concerns about potential congestion.

Mwanthi emphasised that local customs agents have declined to adhere to the directive, citing its conflict with Kenyan laws.

The controversial tax requires Kenyan agents to collect a service charge of $350 (Sh32,974) on behalf of the South Sudan Revenue Authority, a move vehemently opposed by KIFWA members.

The impasse escalated following a notice issued by South Sudan's Commissioner for Custom Division, Brigadier General Aduot Ajang Aduot, dated March 1, 2024.

"I am honoured to introduce to you an initiative by the government of South Sudan to roll out a mandatory Electronic Cargo Tracking Note (ECTN) for all imports to South Sudan and exports from South Sudan," the notice read.

"Following the signing of a memorandum of understanding between the Government of South Sudan through the Ministry of Finance and Planning and Invesco Uganda Limited, an Electronic Cargo Tracking Note will be mandatory for all goods destined to South Sudan and all goods leaving South Sudan with immediate effect."

All clearing agencies were instructed to enforce the regulations through partner Invesco Uganda company to ensure that goods comply with the new regulation.

"Therefore, all importers and exporters must comply and in addition, pay the mandatory service charge of 350 us dollars accordingly," states part of the notice.