Kenya tightens import rules ahead of aviation expansion

ELDORET International Airport, based in western Kenya and ranked the third largest in the country, is suffering cargo decline and the loss of carriers since the Kenya Revenue Authority (KRA) insisted importers declare goods and their value in line with airports in the rest of the country rather than simply pay by weight.

Despite the exit by Cargolux and Qatar Air Cargo in 2007 and 2008 Eldoret is confident capacity of its remaining carriers is increasing, airport manager Peter Wafula told the Nairobi Daily Nation.

KRA reported an estimated loss of KES100 million (US$130 million) every week in July 2009 through a tax evasion syndicate covering the chain of command from customs officials to importers and businessmen with an international reach to China, Turkey, India and Dubai. Goods imports of electronics, clothing as well as furniture were declared by weight rather than by description with rates per kilo at KES280 to KES350.

This comes ahead of the country's expansion project of increased aircraft parking area, car park and access road at a cost KES1.6 billion and increase capacity for five wide body freighters and parking area for 180 more motor vehicles.

Kenya Airports Authority's managing director George Muhoho said increase in carriers interest in Nairobi and in particular from Jomo Kenyatta International Airport, currently the number two in terms of cargo business in Africa. "At completion, the expanded cargo apron will bring the total area under freighting business to 90,000 square metres," said Mr Muhoho.

JKIA strategic location to the Great Lakes Region, several European, North American and Asian freighters makes it an ideal base for freight operations seeking expansion in Africa.

"This is in addition to the fact that Kenya has also registered a rise in the number of companies engaging in export businesses primarily targeting Europe and the Middle East. As a result JKIA has become the second largest cargo airport in Africa," he added in the report from Kenya Broadcasting Corporation.

Cargo facilities are expected to grow from existing five facilities of Kenya Airfreight Handling Limited (KAHL), Transglobal Cargo Centre, Nairobi Cargo Centre, and Cargo Service Centre. Overall the handling capacity turnover is 200,000 tonnes of cargo annually, and an animal holding facility which occupies 1,219 square metres.

(Source: www.schednet.com)