KRA to collect $200m demurrage back taxes

Kenya Revenue Authority and Kenya Ports Authority officers at the port of Mombasa, Kenya, oversee re-shipment of high-end motor vehicles stolen from the United Kingdom. PHOTO | FILE | NMG

Shipping companies are foreseeing an increase in fees they charge importers after the High Court sitting in Nairobi ruled in favour of Kenya Revenue Authority (KRA) and the latter will now collect $200 million in back taxes from shipping companies.

The tax, in the form of demurrage, was accrued by cargo containers which have overstayed beyond their free stay period at different KPA-owned container freight stations.