KPA doles out Sh60m in port charge refund

April 23, 2008: The economic implication of the post-election chaos is still biting the Kenya Ports Authority (KPA). It is now emerging that the parastatal was till refunding accrued port storage charges paid by importers during the first two months of the mayhem.

Pursuant to a decree by the transport minister Chirau Ali Mwakwere during his visit to Uganda, KPA is reimbursing port charges for transit cargo that was not able to get out of the port following the chaos between December and January. And the KPA management has now raised concerns that the reimbursement could hit the Sh100 million mark, saying that by last week the figure stood at Sh60 million. Kenya International Freight and Warehousing Association (KIFWA)however, have been complaining over the snail pace at which KPA was conducting the reimbursements saying it was taking too long.

“What we are not in agreement with some KIFWA members is that, before we do the refunding we must notify the owner of the cargo and inform him over the reimbursement or else this exercise would not benefit the intended party. And as at now we are still receiving claims which I can assure you that we are gong to pay,” stated KPA’s commercial manager, Mr Justus Nyarandi during a stakeholders meeting a KIFWA representative raised issue over the refund stating that some claims lodged by its members were yet to be honoured by KPA.

However, Mr Nyarandi said that the port had laid down procedures that it was following and that includes informing the importer over the refund before a clearing agent is given the cash. Mr Mwakwere had ordered for the refund during his visits to the countries which use the port of Mombasa.

This was a gesture of goodwill by the Government over the inconvenience caused to the business people who conduct transit business via the port of Mombasa.The minister was also put to task over the perceived unnecessary costs of conducting business through the port of Mombasa.Mwakwere was also put on the spot over the number of weighbridges, which the traders wanted to be reduced from four to two.
____________
BUSINESS DAILY
Written by Joseph Kazungu