Transporters across Kenya are pressing for higher minimum freight rates on high‑value cargo, urging a revaluation of existing pricing structures in light of rising theft, tax liability exposure, and human risk along key corridors.
- •The Kenya Transporters Association (KTA) proposes minimum freight rates of US$2,000 for high‑value consignments on the 1,150‑kilometer Kampala–Mombasa corridor and US$1,250 for lower‑value cargo.
- •Typical consignments of coffee and cocoa, valued between US$80,000 and US$150,000, are currently transported at rates of about US$900 per consignment, a figure that KTA terms “commercially indefensible”
- •Transporters across Kenya are grappling with a surge in organized theft targeting high‑value cargo, while lamenting that existing tax rules keep them financially exposed even when they are victims.
The Kenya Transporters Association (KTA) reported eight coffee thefts in the past two months including incidents that resulted in driver fatalities, highlighting both human and operational risks along major transport corridors.
Under the East African Community Customs Management Act (EACCMA) of 2004, transporters are automatically liable for taxes and duties on stolen goods. The provision means that even when consignments are lost to criminal syndicates, transporters must settle government claims, creating a financial burden that many industry participants consider unsustainable.
“This framework is fundamentally unfair, as transporters are victims — not perpetrators — of criminal theft and accidents,” the association said.
KTA also advised cargo owners to provide security escorts and comprehensive insurance. Additionally, transporters have been advised to avoid night driving, use only approved secure parking, and move in convoys where feasible. Clear contractual clauses and carrier liability insurance are recommended to ensure that responsibility and coverage are explicitly defined.
The advisory emphasizes that these measures are intended to balance driver safety, cargo protection, and financial viability, not to assign blame. By clarifying operational expectations and establishing rate floors, the KTA seeks to create a more sustainable framework for logistics firms operating under heightened risk and statutory obligations.
The KTA’s notice comes amid broader concerns about the stability of East Africa’s Northern Corridor, a vital trade route linking the Port of Mombasa with inland markets. The rising theft, coupled with automatic tax liability, could destabilize regional supply chains and affect commerce across the corridor.
According to the Kenya Revenue Authority’s Customs and Border Control Department, reported collections in customs revenue stood at KSh 879.3 billion during the 2024/2025 financial year, an 11 % increase over the prior year. This averaged Ksh 3.0–3.5 billion per day in duty collections on imports and transit goods.
