The agents have been pushing to have the mandate of licensing taken away from tax authorities and handed over to an independent body. The Kenya Revenue Authority is embroiled in a court battle with clearing agents in Kenya over licensing.

Instead of being licensed by the Customs Departments of the East African revenue authorities, the approximately 3,000 freight forwarding and cargo clearing agents in region are pushing for the establishment of national authorities to oversee the industry in EAC member countries.

Kenyan agents, who have been on a go-slow since February, have gone to court seeking to have KRA compelled to expedite the issuing of licences.

But in delaying the renewal of licences, KRA wants to vet the agents with the intentions of revoking licences of companies implicated in corruption that has seen Kenya loss millions in tax revenue annually.

Weeding out rogue agents

KRA contends that some of the 1,200 cargo agents in Kenya have been colluding with Customs officials to evade tax and run contraband smuggling rackets, particularly at the port of Mombasa.

Over the past 12 months, KRA has seized close to 200 containers stuffed with contraband goods at the port. The increase has been blamed on cargo clearing agents colluding with Customs officers and unscrupulous importers and exporters.

But even as KRA plans to weed out rogue clearing agents, industry players want their licensing done by an independent body.

In effect, the players have drafted a model Bill in which they propose the creation of competent national authorities in each East African Community partner state to license Customs agents and freight forwarding practitioners.

"The reason why we are pushing for self-regulation through a model Bill is to enhance professionalism and compliance with rules and regulations. This will end corruption in the industry," said Federation of East African Freight Forwarders Associations executive director John Mathenge. He added that due to inadequate legislation, the federation wants regional governments to use the model Bill to enact national laws to streamline the industry, which has operated without clear guidelines and a strong legal framework.