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The Kenya Ports Authority (KPA) has been commended by a cross section of Kampala traders, for introducing Kargo Pay, a cutting-edge electronic payment system. The alternative cargo payment mode is set to revolutionize efficiency and expedite the settlement of port charges.

Ugandan traders under their umbrella Kampala City Traders Association (KACITA) applauded the Kenya Ports Authority (KPA) for the new payment system which they said will improve efficiency and ensure prompt settlement of port charges.

The traders said the new system will improve clearing processes, save time and the turnaround time for the traders, enabling them to increase their trade volumes in the long run.

KACITA chairman, Thaddeus Musoke, said clearing goods at the port has been one of the traders’ biggest headaches, partly because some had to physically move huge chunks of money to Kenya to clear goods.

“This has been a big threat to our lives, because you just never know who knows about the money you are carrying. Others have been moving the money through the banks, but even then, it has been inconveniencing,” he said.

Musoke added that the new system comes with a lot of convenience, as it enables the traders to clear their goods from the comfort of their homes, even during night hours, which previously has been impossible.

A delegation from the Chinese business community in Uganda enjoyig a light chat with KPA manager, Betty Mkonyi and the KPA general manager finance, Patrick Nyioke, at the Kampala Serena Hotel.

Christened Kargo Pay, the new system was first launched in Kenya last year 2023, after the discontinuation of credit ledger payment system to customers, and a transition by Kenya Ports Authority to cash basis operations.

According to Musoke, the traders are especially happy that the new system will allow them to clear port charges in the local Ugandan currency, in addition to clearing remotely, from within Uganda.

After paying in local currency, banks will then convert the payments made in local currency to US dollars equivalent as per the outstanding value of invoices

“Sometimes you find that changing money to dollars is hectic. However, paying in local currency is the most convenient thing they have done for us, and we are happy,” he said, adding that the traders are ready to embrace the new system.

In addition to currency flexibility, Kargo Pay also introduces alternative payment methods such as bank cards and mobile transfers for regional customers. This innovation aims to eliminate the need for physical visits to banks, further enhancing convenience and efficiency in port charge settlements.

Nynnet Rwatanga, from TrueLine Africa said Kargo Pay is expected to reduce the headache in clearing of goods:” because the money is now pulled directly from the bank account to the App Wallet, and then clearing is done instantaneously”.

While acknowledging the app's benefits, Rwatanga suggested improvements such as access to statements, which are crucial for businesses. This feedback reflects the traders' readiness to embrace digital solutions that enhance their operations.

During a user familiarization customer experience engagement for traders at the Kampala Serena Hotel, KPA said the application facilitates instant settlement of port charges, thereby significantly enhancing punctuality and accuracy in collections.

The app will also allow customers to electronically access funds in their accounts at any time of day or night, regardless of bank working hours, thus enabling instant settlement of port charges.

The app was first launched in Kenya in August 2023, where it has significantly improved the punctuality and accuracy of collections, hence the rolling out to other partner states, including Uganda and Rwanda.