Kenya : Government Clearing Agency set for a revamp

GCA is mandated to clear government cargo for Ministries, Departments and Agencies.  

The state is committed to turn around the moribund Government Clearing Agency (GCA) into a profit-making institution over the next two years.

Principal Secretary (PS) in the State Department for Shipping and Maritime Affairs, Shadrack Mwadime, says the agency has the potential to generate revenue worth Ksh500 million annually through provision of clearing and forwarding services.

“We are out to revamp the GCA and restore it to its original status in line with current realities,” he said, adding that it would be repositioned to contemporary international standards.

While touring the agency’s head offices at Shimanzi area of Mombasa, Mwadime said revamping the agency’s operations would result in significant savings to the government in the form of demurrage charges and penalties the government currently pays to private clearing agencies for its imported goods.

Mr Mwadime said the move to revamp the clearing agency will also ensure safety and confidentiality in clearing of sensitive government cargo.

The PS noted that the priority is to resuscitate and revitalize institutions that have the capacity to contribute to the country’s economy and thus uplift the lives of Kenyans.

The GCA is a department meant to clear government cargo for Ministries, Departments and Agencies (MDAs).

Over the years, however, this function has been underperforming as MDAs opted to clear their goods through private clearing and forwarding agents due to GCA’s inefficiency.

Mwadime disclosed that in the current government administration, the functions of GCA have been transferred from the National Treasury and domiciled in the State Department for Shipping and Maritime Affairs.

The functions involve the clearing and forwarding of ocean, air and land cargo principally being offered only to government interest cargo.

By Hussein Abdullahi and Andrew Hinga (KNA)