- The Kenya Ports Authority (KPA) has announced a significant change in its operations, as it will be shifting to a cash basis for rendering services effective from 1st July 2023.
- It is crucial for all stakeholders to take note of these changes from Ledger/Credit to Cash basis and to adhere to the given grace period for debt settlement and dispute resolution.
The Kenya Ports Authority (KPA) has announced a significant change in its operations, as it will be shifting to a cash basis for rendering services effective from 1st July 2023.
KPA announced the fresh development through a customer notice dated July 6, 2023, issued by the authority's director William Kipkemboi Ruto.
In light of this transition, the Authority will no longer open or operate Ledger guarantee accounts or credit facilities, and all customers currently holding such accounts will be automatically converted to cash accounts.
"Kenya Ports Authority wishes to notify our esteemed customers that beginning 1st July 2023, the Authority will render services on a cash basis. Consequently, all customers with ledger guarantee accounts will automatically convert to cash accounts. The Authority will cease to open and operate Ledger guarantee accounts/credit facilities," the notice read.
To facilitate a smooth transition, customers with ledger-guaranteed accounts are requested to settle all pending or outstanding invoices before 30th June 2023.
It is important to note that after this date, the Authority will recall all guarantees with banks. This change aims to streamline the financial processes and enhance efficiency in the Authority's operations.
The management of Kenya Ports Authority has expressed concern regarding customers with substantial outstanding debts, which have placed a strain on the Authority's ability to meet its financial obligations.
To address this issue, the Authority has extended a one-month grace period to those customers to clear all outstanding debts.
However, failure to settle the debts within the grace period will result in denial of port services and access to port facilities until the debt is fully cleared.
Recognizing the need for prompt resolution of disputes, the Authority has established a dedicated dispute resolution team.
This team has been appointed to assist customers in resolving any outstanding disputes, allowing them to regularize their accounts effectively.
Customers with disputes are advised to liaise with the dispute resolution team located at the KPA Headquarters, Finance block, 2nd Floor for assistance in resolving their issues.
It is crucial for all stakeholders to take note of these changes from Ledger/Credit to Cash basis and to adhere to the given grace period for debt settlement and dispute resolution.
Failure to comply with these requirements may result in locked accounts, denial of port services, or restricted access to port facilities.
"Please take note of the change from Ledger/Credit to Cash basis and the grace period given to resolve your disputes and clear outstanding debts to avoid your account being locked, denied Port services or access to Port facilities," the notice read,
These changes are aimed at ensuring financial stability and maintaining optimal service delivery to the esteemed customers of the Authority.