Transporters ask taxman to pay for cargo tracking system

A series of meetings between the parties has not borne fruit with the transporters asking KRA to bear the costs like it did with the electronic tax register (ETR) .

“Revenue collection and protection is a prerogative of KRA and not transporters. We should not meet the cost of ECTS,” Paul Maiyo, the Kenya Transporters Association (KTA) secretary said last week.

The truckers said they have installed fleet management system to track their vehicles and ECTS was not adding value to their businesses.

KRA insists the installation deadline is Wednesday.

Collins Mukhongo, the assistant commissioner of ICT at KRA, said only 400 trucks were fitted with the gadget two weeks ago.

There are more than 50,000 trucks that should have the tool, said Mr Maiyo.

During piloting, KTA faulted the June deadline, saying it was not practical due to “regular system errors.”

A few truckers who have installed the ECTS, says Mr Maiyo, have complained that the Global Positioning System (GPS) gives incorrect indications.

“Issues such as the percentage of the error, tolerance against harsh climatic and terrain conditions are yet to be addressed.”

Truckers also said the rule was discriminating Kenyan companies since transporters who have registered trucks in the other East African countries have not been required to have ECTS.

The directive would have come after all the five East African countries harmonised transport rules and regulations, KTA said.

Unfair pricing

They have also complained about pricing, faulting working with a single supplier — Navisat Telematics.

However, a few weeks ago, SGS was also approved to install the system.

SGS is not operational yet, KTA said.

Truckers have been pushing for the licensing of more players to help in lowering the costs.