Importers moving goods through the Namanga One Stop Border Post must now buy their marine cargo insurance from local insurers licensed by the Insurance Regulatory Authority (IRA), and many of them want the rule gone.
The requirement, which the Kenya Revenue Authority (KRA) is enforcing, has left traders and clearing agents calling on the government to abolish the new regulations altogether.
Their main grievance is choice. Under the arrangement, importers cannot pick their own provider, and the percentages they pay are set for them. Traders say this adds an unnecessary financial burden to a business that is already expensive to run, with costs per truck climbing sharply since the rules took effect.
Time is another worry. Clearing agents say the additional paperwork complicates the release of cargo and could cause bottlenecks, with goods held up at a border that Kenya and Tanzania depend on for trade.
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Shoppers could end up paying for it all. Business operators warn that the higher costs will not stay with traders and will be passed on through retail prices, making everyday goods dearer for consumers.
Against this backdrop, traders are urging the government to hold talks with industry players before enforcing such far-reaching measures. They also want the freedom to obtain insurance cover notes from providers of their own choosing, rather than being tied to a fixed list of insurers and prices set by the government.
By reporter
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