The Kenya Revenue Authority (KRA) has announced plans to auction 193 motor vehicles alongside other imported merchandise today, Tuesday, June 21, to recover millions in taxes following the expiry of a notice issued last month.
The taxman noted that the goods will be auctioned in 322 slots after their owners failed to offset the custom duty and other requisite taxes for clearance at the port in a move aimed at also decongesting the warehouses.
“Goods will be auctioned pursuant to provisions of section 42 of the East African Community Customs Management Act. Notice is given that unless the undermentioned goods are entered and removed from the custody of the Customs Warehouse Keeper, Kilindini, within thirty (30) days of this notice,” read part of the gazette notice dated May 20, 2022.
This is the final customs auction for financial year 2021/2022, and KRA is inviting interested bidders to view the goods at 16 different warehouses, citing that the number of goods at the warehouses continues to rise as traders contend with high taxes and increased yard occupancy rates.
“I found my goods listed in the auction gazette notice because I did not pay demurrages and clearing taxes since my business collapsed during Covid-19. My two canters and a container of used clothes are some of my goods being auctioned, but I hope I will clear with KRA before the exercise begins,” said John Mwaliko, a Mombasa businessman.
Impounded cargo is among the 193 cars, sewing machines, tea processors, 48 forty-feet containers, and second-hand clothes listed for auction, and traders are now pleading with the government to either give them a grace period or lower rates due to the economic turmoil caused by the Covid-19 pandemic.
