The Kenya Ports Authority has announced the suspension of payments through ledger accounts beginning July 1.

In a statement to customers, KPA said that they will start rendering services only through bank cheques and other bank payment system adding that all customers with guarantee ledger accounts will automatically convert to cheque deposits.

The statement signed by the KPA Managing Director Captain William Ruto stated that the authority will cease to open and operate ledger guarantee accounts or credit accounts.

"Customers with ledger guaranteed accounts should ensure settlement of all pending or outstanding invoices before June 30. The authority will recall all guarantees with banks after June 30," said Ruto.

Ruto said that the management had noted with concern customers operating in the port with huge outstanding debts.

This he said he said had put a strain in the authority's ability to meet financial obligations.

"The authority has therefore given these customers a one month grace period to clear all outstanding debts, failure to which the comcernes customers will be denied port services and access to port facilities until the debt is cleared," Ruto said.

The MD further stated that the authority has appointed a disputes resolution team for customers with outstanding disputes.

The team he said will resolve all disputes so that customers can reguralize their accounts.

Ruto said that the dispute resolution team will be located at the KPA headquaters, Finance block second floor to resolve all the disputes.

According to a source the move was advised to arrest looting loopholes after the discovery of a syndicate within the port involving some KPA staff.

It is alleged the syndicate has been manipulating the ledger accounts that have led to increase in debts. Some staff are currently under probe.