Officials butt heads over congestion resolution at Kenyan port

AN UNPRECEDENTED 30% growth in cargo traffic caused by global increases in containerisation and the upward economic growth in the regional economies that rely on the port of Mombasa have created conflict between officials on how to alleviate mounting congestion at the port. The Kenya Ports Authority recently contracted two container freight stations (CFS) to handle the excess cargo awaiting clearance at Mombasa port before it is released to the owners. The Kenya Revenue Authority has opposed this decision. The Mombasa Container Terminal and the Consolbase CFS are both run by the KPA. The KRA, however, insists that the cargo is still in its possession since that cargo has simply moved from one terminal to another. The KRA requires the execution of cash bonds for all the containers that leave the port. This bond can only be cancelled once the declaration of the goods being imported and payment of taxes are fulfilled along with proof that the cargo has in fact left the country. Although the KPA has started a 24-hour, 7-day programme, there is still no verification and delivery of transit cargo at night, according to the port’s chief operations manager. KPA has however been pushing KRA to assist in realising 24-hour operations in the port.