Traders protest new cargo verification levy

Port players have faulted the Kenya Ports Authority (KPA) for introducing a cargo verification fee against the National Treasury recommendations.

The “ambush” fee introduced in mid-February has been opposed by key stakeholders including shippers as well as clearing and forwarding agents who have staged a go-slow to protest the charges.

The KPA introduced new fees for any container directed to undergo verification by the Kenya Revenue Authority (KRA) despite the Treasury directing port management to suspend any introduction or increase of tariffs without consulting key stakeholders.

In the new verification charges, a 20-foot container will be charged Sh8,000 while a 40-foot container will cost between Sh12,000 and Sh16,000 depending on the tonnage, and excluding Value Added Tax (VAT).

This is the third time KPA is introducing the fees after 2012 and 2018 where Treasury quashed the order and gave conditions to be followed for any new charges. “We have been made aware that the new proposed tariffs were made by KPA without any prior consultation of key stakeholders,” read a section of statement signed by the then Treasury PS Joseph Kinyua.

To facilitate the new levy, KPA has contracted Mercantile Cargo Terminal Operation Company to provide stripping services during verification, a move that has been opposed by the Shippers Council for East Africa (SCEA) and Kenya International Freight and Warehousing Association (Kifwa), who have accused KPA of acting without consulting key stakeholders.

“The introduction of verification fee is not only high uncalled for but not practical to implement with the requirement that the payment be made prior to the verification exercise,” said SCEA Chief Executive Officer Gilbert Langat. The council has also raised concern over security of the cargo once the containers are opened with contracted company bringing its own team.

“While we support the decency and ethical platform that comes with the controlled ‘gang’, we find the cost/implementing of the out sourced gang services wanting. With the foregoing, it is our position that the verification charges are withdrawn with immediate effect and long lasting solution be sought through engagement of all stakeholders,” he said.

Already more than 500 clearing and forwarding firms agents have suspended their operations at the Port of Mombasa and at the ICD until the matter is resolved, a move which might result to cargo backlog in the two facilities.