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Goods worth Shs1b stuck in Mombasa after Ugandan buyer disappears
Containers at Mombasa Port. PHOTO | FILE
What you need to know:
- The goods have been at the port for over a year pending clearance from the Kenya Revenue Authority and the Uganda Revenue Authority (URA).
Goods worth more than $300,000 (Shs1.1b) are stuck and await re-exportation to India after a Ugandan buyer disappeared upon arrival in Mombasa.
The goods are from Marathon Electric Motors, an Indian company, and include 59 motors, which were supposed to be delivered to Chemique Adhesives and Sealants in Uganda.
“....the said goods were to be shipped to Chemique Adhesives and Sealants Limited, based in the Industrial Area, Mulwana road. But when the goods (Motors) arrived in Mombasa, the buyer Chemique Adhesives & Sealants Limited in Uganda, stopped communicating, and the Applicant failed to trace it,” the director of Marathon Motors, Mr Mitul Zaveri, stated in an affidavit.
A quick tour of Mulwana Road by this reporter indicated that there was no such company at the said address.
However, Chemique Adhesives and Sealants Limited is a legitimate company in the United Kingdom (UK).
The lawyers of Marathon Motors managed to secure a court order allowing the re-exportation of the goods.
Mr Daniel Angualia, a lawyer, said the Ugandan buyer was riding on the reputation of the company in the UK and that is how they managed to earn the trust of Marathon Motors.
“The company [in Uganda] gave an impression that it had a relationship with Sealant UK. Same company name with the reputable UK company. The re-export process shall be commenced after advertising for 14 days as directed by the judge. We are working on it,” he said.
The goods have been at the port for over a year pending clearance from the Kenya Revenue Authority and the Uganda Revenue Authority (URA).
According to court documents seen by this publication, URA indicated that a court order is required to allow the re-exportation, and customs duty is expected to be paid whether the goods were claimed or not.
“.....the mandate of the respondent (URA) is to collect government revenue as provided for under the law,” the documents read in part.
On November 3, 2022, Marathon Motors received a purchase order from “Chemique Adhesives and Sealants” authorising delivery of the said goods before the end of the month.
Documents indicate that two months later, the said goods were shipped to Mombasa on February 9 and March 8 last year at which point the supposed consignee had stopped communicating and could not be reached.
