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Kabaza operators urged to comply as MRA moratorium nears deadline

This initiative, aimed at formalizing the kabaza sector, offers reduced customs rates to encourage compliance, improve road safety, and increase government revenue, with enforcement measures set to begin on July 1 for those who fail to register
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Malawi Revenue Authority (MRA) has expressed satisfaction with the increasing number of Kabaza motorcycle operators responding to the ongoing customs clearance and registration exercise, ahead of the June 30 deadline.

The special clearance period, which began in March, was introduced to allow Kabaza operators to register their motorcycles at reduced customs rates of K56, 000 and K77, 000, depending on engine size to promote legal compliance while easing the financial burden on operators.

MRA Acting Head of Corporate Affairs, Wilma Chalulu, in a questionnaire response to Malawi News Agency on Thursday, said the feedback has been very positive, with more operators coming forward in recent weeks.

“As the deadline approaches, we have seen a sharp increase in compliance. This was expected, as many people tend to act closer to the deadline. We are pleased with the turnout so far and will release the final figures of motorcycles cleared and revenue collected once the exercise ends,” Chalulu said.

She added that while there was initial resistance from some operators, most have come to understand that customs clearance is a legal requirement.

Kabaza operators are supposed to clear their motorcycles by 30 June 2025 failure of which will see their motorcycles being impounded from 1 July 2025

However, MRA has made it clear that the moratorium will not be extended, stressing that the four month window has been sufficient for compliance.

“From July 1, motorcycles that remain uncleared will be impounded, and owners will have to pay normal customs duties plus penalties,” she said.

Public Relations Officer for the Kabaza Association of Malawi, Leah Chiletsa, said they will continue to encourage  all kabaza motorcycle owners who haven’t yet registered to do so as soon as possible.

“We thank the government for responding to our plea and offering this opportunity at an affordable rate,” she said.

Chiletsa acknowledged that many operators struggled to participate at the start of the process due to financial constraints and lack of understanding about the process.

The registration initiative is part of government efforts to formalize the kabaza sector, improve road safety, and boost revenue collection.

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