Kenya’s Tea Exports Halted as KRA System Crashes at Mombasa Port

(Nairobi) – Goods worth over $25 million are currently stuck at the Port of Mombasa due to a breakdown in the Kenya Revenue Authority’s (KRA) system, which has disrupted operations for the past five days. The malfunction of the KRA’s integrated Customs Management System (iCMS) has caused significant delays in the processing and clearance of exports, particularly affecting Kenya’s vital tea export industry.The tea sector, which generates around $25 million (Sh3.2 billion) weekly from exporting approximately 150 containers of tea daily, has been hit hard by the breakdown. The disruption has resulted in a massive backlog, with 750 tea containers currently waiting to be cleared at the port. This has led to increased costs for exporters, as they face escalating demurrage and logistics fees. Tea traders are particularly distressed, as they are unable to meet deadlines for shipments, which affects both their revenue and customer relationships.

The issue stems from the KRA’s iCMS system, which is responsible for handling customs clearance and the payment of taxes for imports and exports. The failure of this system has created a bottleneck in the entire supply chain, starting from the entry point of goods into the port to the final delivery to clients. In the tea industry, the delays are especially problematic, as exporters must meet tight deadlines to ensure the quality of their products and avoid wastage. Tea, being a perishable commodity, is especially sensitive to delays.

The KRA has requested that traders pause all lodging of documents in the system until the technical issues are resolved. However, despite the call for a temporary pause, the backlog of goods continues to grow, and traders are feeling the financial strain of the prolonged disruption. The tea industry is not the only sector affected; other traders and stakeholders who rely on the port for imports and exports have also been experiencing delays and incurring significant losses due to the system failure.

For the past five consecutive days, the situation at the Port of Mombasa has continued to worsen, causing substantial financial distress to exporters. The KRA’s system breakdown is also affecting the wider economy, with the Port of Mombasa being a critical hub for goods entering and leaving Kenya. The tea industry alone is one of the country’s most important sectors, with export revenues being a key contributor to Kenya’s foreign exchange earnings.

As of now, there is no clear timeline for when the KRA system will be fully restored. The authorities have yet to provide a public statement on the cause of the failure or an estimated resolution date. Traders are urging the government to prioritize the restoration of the system to prevent further losses and ensure that trade continues smoothly.

The disruption highlights the vulnerability of key infrastructure systems in Kenya and the importance of robust technological solutions for the smooth functioning of the export sector. With tea being one of Kenya’s top exports, the ongoing challenges at Mombasa Port may have longer-lasting effects on the industry and the country’s economy as a whole.