In a meeting with the Uganda Revenue Authority (URA), Betty Mkonyi, the Country Representative for KPA, stated that the new method dubbed Cargo pay was in the final stages and will be rolled out in January 2024.

“It will make it easier for traders to pay, and sensitization is currently ongoing for all stakeholders,” Mukonyi stated.

The announcement by Mkonyi was made on the same day Uganda expressed its frustration over being denied an importing licence by Kenya to import its own oil.

According to Mukonyi, the traders will use their mobile phones to pay for KPA services using their local currencies.

Mukonyi alluded that initially, Ugandans had to travel to Mombasa to make payment for KPA services.

“This will help solve the challenge of traders having to send money to Kenya or travel to make payments” She explained.

On his part, the URA Commissioner General remarked that the payment method will go a long way in facilitating trade between Kenya and Uganda.

“We should continue to improve the relationship to make trade seamless,” he noted.

While Uganda has continued to import its cargo majorly through the Port of Mombasa, tension exists between the two countries over the importation of fuel worth Ksh300 billion. 

Ugandan President Yoweri Museveni in November complained that oil marketers from Kenya were selling fuel to his country for an exorbitant price. 

As such, Museveni directed the Uganda National Oil Company (UNOC) to buy refined fuel and transport it through Kenya bypassing oil company marketers. 

With Kenya refusing to issue an import licence to UNOC, Uganda has threatened to import fuel with or without a licence starting February 2024.