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KACITA applauds new port payment system

Edward Kayiwa 14th Feb, 2024 Trade Edward Kayiwa

Ms Betty Mkonyi (2L), the KPA Country Representative for Uganda, interacts with importers at the KARGO Pay familiarisation workshop at Kampala Serena Hotel.

Ugandan traders under their umbrella body, the Kampala City Traders Association (KACITA), have applauded the Kenya Ports Authority (KPA) for introducing a new electronic payment system aimed at improving service delivery through instant settlement of port charges.

The traders say the new system would improve the clearing processes of good from the port, save time as well as reducing the turnaround time for importers, thus enabling them to increase their trade volumes in the long run.

KACITA chairman Thaddeus Musoke said clearing goods at the Mombasa Port has been one of the traders’ biggest headaches, partly because they had to physically move huge chunks of money to Kenya, to clear goods.

“This has been a big threat to our lives, because you just never know who knows about the money you are carrying. Others have been moving the money through the banks, but even then, it has been a big inconvenience,” he said.

Musoke added that the new system comes with a lot of benefits, as it enables the traders to clear their goods from the comfort of their homes, even outside office hours, which was impossible previously.

Christened ‘Kargo Pay,’ the new system was first launched in Kenya last year, marking the discontinuation of all credit sales to customers, and a transition by port authorities to electronic settlement of port charges.

According to Musoke, the traders are especially happy that the new system allows them to clear port charges in Uganda Shillings. After paying in local currency, banks will then convert the payments made in local currency to the equivalent in US Dollars, at a rate lower than the banks' spot rate, which is as an incentive to boost electronic settlements.

“Sometimes you find that changing money to US Dollars is hectic. However, paying in local currency is the most convenient thing they have done for us, and we are happy,” he said, adding that the traders are ready to embrace the new system.

In addition to currency flexibility, ‘Kargo Pay’ also introduces alternative payment methods such as ATM cards and mobile transfers for regional customers. This innovation aims to eliminate the need for physical visits to banks, further enhancing convenience and efficiency in port charge settlements.

Ms. Nynnet Rwatanga, an official from True Love Africa, said Kargo Pay is a very progressive development as the money is now pulled directly from the bank account to the app wallet, and then clearing is done instantaneously.

Additionally, she said the app would improve the credibility of agents and suppliers, who will most likely deliver the goods on time, hence solidifying the trust of their clients.

She however noted that the app could be improved by allowing the users to access information such as bank statements, which is crucial for their operations.

During a user familiarization workshop for traders at the Kampala Serena Hotel on February 14, KPA officials noted that the application facilitates instant settlement of port charges, thereby significantly enhancing punctuality and accuracy in collections.

The application also allows customers to electronically access funds in their accounts at any time of day or night, regardless of bank working hours, thus enabling instant settlement of port charges.

Following the successful launch in Kenya last year, the app is now being rolling out to other EAC partner States, including Uganda and Rwanda.

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