A five-day technical failure of the Kenya Revenue Authority’s (KRA) Integrated Customs Management System (iCMS) has severely disrupted operations at Mombasa Port, leaving tea exports in limbo and causing significant financial repercussions.

Tea industry stakeholders estimate losses of Sh2.9 billion in the past week alone, with over 150 tea containers delayed due to the system breakdown.

The East African Tea Trade Association (EATTA), which oversees the region's tea auctions, has raised alarms over the long-term economic implications if the situation remains unresolved.

Managing Director of EATTA George Omuga emphasized the broader risks posed by the outage.

 He warned that delays in delivering auctioned tea could tarnish the reputation of the Mombasa Tea Auction, potentially leading to blacklisting by buyers.

Such developments could reverse recent improvements in tea prices.

“This persistent failure of the iCMS, coupled with downtime in KRA’s payment systems and malfunctioning port scanners, has created logistical bottlenecks that are paralyzing container mapping processes,” said Mr Omuga.

He added that continued disruptions might force the suspension of the association’s weekly tea auctions, which would lead to additional weekly losses of Sh3.2 billion.

In a statement, KRA acknowledged the ongoing challenges, advising stakeholders to temporarily hold off on submitting export documentation while technical teams work to restore the system.

“We sincerely apologise for the inconvenience and appreciate your patience during this time,” read the statement.

Despite multiple engagements between EATTA and KRA, Mr Omuga expressed frustration over the lack of tangible solutions to prevent such breakdowns in the future.

He called for the implementation of a backup system to safeguard critical export activities, especially in the tea sector, a cornerstone of Kenya’s economy.

The timing of the outage adds to concerns, as the Tea Board of Kenya (TBK) continues its efforts to diversify the country’s tea export markets and reduce reliance on key importers like Pakistan and Egypt. The TBK has outlined a five-year plan targeting 13 new markets, including the US, Canada, Germany, and Saudi Arabia.

Recent data from the TBK shows that between July and September 2024, Kenya exported tea worth Sh2.24 billion, totaling 155.09 million kilogrammes--a significant increase compared to the same period in 2023.

This progress now risks being undermined by operational inefficiencies at the port.