April 16, 2008: Kenya has been on a diplomatic offensive aimed at persuading transporters from neighbouring countries to revert to using the Mombasa port. Kigali’s and Kampala’s demands are already being effected, with the suspension in the implementation of Kenya Revenue Authority’s new rules requiring transporters to register for a Company Transit License at a fee of Sh100,500 and a transit goods fee of Sh42,000.
KRA has been demanding that transporters place a security bond of Sh10 million for goods in transit and also wants trucks barred from carrying cargo other than for transit. Mombasa port users’ requests that Kenyan authorities reduce the number of weigh bridges from four to two has also been effected, reducing the number of weighing stations from four to just one.
Local and regional transport companies had faulted KRA that it would be uneconomical not to allow trucks licensed to carry transit traffic, to carry Kenyan exports to Uganda and vice versa. According to Eunice Mwanyolo, the chief executive for the Kenya Transporters Association, their members should be licensed as interstate carriers thereby enabling them to transport both types of cargo. She says that this would be in line with COMESA Carrier License Regulations. Ugandan and Rwandan transporters want road blocks reduced. KRA’s customs officials say a requirement that transit cargo be escorted will soon be a thing of the past, when the taxman fully automates its operations to enhance cargo tracking.
The neighbouring countries want Kenya to allow for enforcement of the regulations to eliminate the fourth axle in order to limit damage to road infrastructure as is the case in Uganda that is already enforcing the axle load regulations. Among others, these were a raft of conditions put forward by the users of Mombasa and should be met before Uganda and Rwanda fully revert from using other neighbouring ports.
Concerns over the $450 surcharge that the shipping lines are levying on imports is also being looked into, after the issue was raised by Ugandan transporters’ at a recent meeting in the Ugandan and Rwandese capitals. Kenya’s Transport ministry which recently visited the two countries says it has set up an appropriate committee to advise on further requests that the waiver on storage charges be extended and KPA’s new higher tariff be delayed by a further period of 6 months to allow the business community to recover the losses incurred during the political crisis in Kenya as requested by Uganda.“The issue should be reviewed by the Board and an appropriate recommendation be made to him for action,” Transport minister Chirau Ali Mwakwere says.
The meeting noted that marine Services across Lake Victoria had been interrupted due to the clause in the concession agreement that requires Lloyds certification before the vessels are insured. The meeting was informed that there is already an agreement to amend the concession agreement to allow certification by any other society or Maritime of other countries. Also planned is the rapid execution of the East African Transport and Trade Facilitation Project that would result in the improvement of border post facilities and enhance one-stop border operations.
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BUSINESS DAILY
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