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.