Importers To Decide Mode Of Transport In New KPA Directive

The Kenya Ports Authority (KPA) now demands all shipping lines and agents to facilitate importers’ nomination of the place of clearance of their cargo.

This includes Port clearance, Kenya Revenue Authority’s Licensed Container Freight Stations (CFSS), and Kenya Ports Authority’s Inland Container depots.

“This is therefore to notify all shipping lines that importers’ documentation of place of clearance and mode of transport for their goods shall be at their choice’’ KPA managing director John Mwangemi said in a statement.

According to KPA, the move follows President William Ruto’s directive requiring the clearing of all goods and other attendant operational issues to be reverted to the Port of Mombasa.  According to Ruto, the move would restore thousands of jobs that were lost when the government issued a directive for cargo from the port to be ferried to Nairobi and Naivasha dry ports by Standard Gauge Railway (SGR).

“I will be issuing instructions for clearing of goods and other attendant operational issues to revert to Mombasa Port as I made a commitment to Kenyans. This will restore thousands of jobs in the city of Mombasa,” Ruto said.

The 2018 directive led to the collapse of container freight station (CFS) businesses and the loss of cargo from road transporters. The transportation of cargo by standard Gauge railway was also costly as cargo owners incurred an additional US$300 (30,000 shillings).

“The directive created a monopoly and as a result the railway service became costly. Some cargo used to be transported by rail to Nairobi and then returned to the Coast. The move also forced clearing and forwarding firms to shift from Mombasa. CFSs are almost closing down,” National Chairman of the Kenya International Freight and Warehousing Association (Kifwa) Roy Mwanthi said.

The announcement by the president was hailed by many traders and leaders from the coastal region who saw it as the key to the revival of the economy of the coastal region.  Their counterparts in Nakuru are at the same time pushing for investment in the Naivasha Inland Container Depots.