Ugandan traders embrace efficiency with Kargo Pay at KPA
Traders say the new method will streamline clearing procedures, reduce wait times, and eventually allow them to increase their trade activity.
Ugandan traders, represented by the Kampala City Traders Association (KACITA), have expressed their support for the Kenya Ports Authority's (KPA) latest payment system, Kargo Pay.
They said the system will enhance efficiency and ensure timely settlement of port charges.
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Kargo Pay, which was initially launched in Kenya following the discontinuation of the credit ledger payment mechanism, represents a shift in cash-based operations at the Kenya Ports Authority.
Traders say the new method will streamline clearing procedures, reduce wait times, and eventually allow them to increase their trade activity.
According to Thaddeus Musoke, chairman of KACITA, clearing products at the port has long been a big difficulty for traders, owing to the need to physically bring substantial sums of money to Kenya for clearance.
"This poses a significant threat to our safety, as the visibility of carrying such amounts is concerning. Some have resorted to banking channels, yet even this has proved inconvenient," he noted.
Musoke highlighted the benefits of the new system, which allows traders to clear goods remotely, including at night, a convenience previously unattainable.
Musoke noted that traders are particularly pleased with the new system's ability to clear port charges using the local Ugandan currency, along with the option for remote clearance from within Uganda.
"After settling in local currency, banks will then convert the payments to US dollars based on the outstanding invoice value," he explained.
He underlined the ease of paying in local money, particularly given the inconvenience of currency conversion to dollars. Musoke affirmed dealers' willingness to adopt the new system.
Furthermore, Kargo Pay offers additional payment options, such as bank cards and mobile transfers, for regional customers, aiming to eliminate the need for physical bank visits and enhance convenience and efficiency in settling port charges.
According to Nynnet Rwatanga of TrueLine Africa, Kargo Pay is anticipated to alleviate the challenges associated with clearing goods by enabling direct withdrawal of funds from bank accounts to the App Wallet, resulting in instantaneous clearance.
While acknowledging the app's advantages, Rwatanga highlighted the need for access to statements, which is essential for businesses. This feedback underscores traders' willingness to adopt digital solutions that streamline their operations.
During a user familiarisation customer experience event for traders at the Kampala Serena Hotel, the Kampala Port Authority (KPA) emphasised that the application facilitates immediate settlement of port charges, significantly improving punctuality and accuracy in collections.
The application will additionally enable customers to electronically access funds in their accounts 24/7, overcoming the limitations of bank working hours and facilitating the immediate settlement of port charges.
Originally launched in Kenya in August 2023, the app has notably enhanced the timeliness and precision of collections, prompting its expansion to other partner states such as Uganda and Rwanda.
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