Traders react as Kenya moves to decongest Mombasa Port

The Mombasa Port has over the years faced challenges including congestion. The new terminal is expected to offer some relief to traders in the East African region.

Kampala

Ugandan traders have expressed mixed reactions over the construction of a second container terminal at the Mombasa Port.

Mr David Njoroge, Hima Cement general manager told Daily Monitor yesterday in a telephone interview that if implemented, the new terminal is expected to facilitate quicker cargo clearance, ease congestion and result in lower the cost of doing business.

Mr Njoroge said the huge delays to cargo clearance at the port of Mombasa have been costing the business community millions of shillings both in physical cash and time.

Traders under their umbrella association, Kampala City Traders’ Association (Kacita), on the other hand said they are not excited because of the ‘harsh treatment’ Ugandan traders get from Kenyan authorities.

“The Kenya Revenue Authority and the Kenya Ports Authority are doing everything possible to frustrate us. They always put arbitrary costs any time they feel; such as cash bonds. They take us for granted because we are land locked,” Mr Issa Sekitto, the Kacita spokesperson told Daily Monitor yesterday.

Earlier this month, Kacita urged its members to start thinking of the Dar es Salaam port in Tanzania as an alternative in protest of what they regard as harsh treatment through imposition of trade barriers by the Kenyan authorities.

According to Kacita, Kenyan authorities are abrogating the East African Community protocol by erecting non-tariff barriers such as the recently disputed cash bonds.

In September 2012, KPA directed all Uganda-bound sugar and motor vehicle exceeding 2,000cc transiting through Mombasa would be exposed to a cash bond equivalent to the value of imported cargo or bank guarantee before leaving the port, a move rejected by Ugandan traders.

Mr Sekitto said Kacita will this Thursday meet officials from the Dar es Salaam Port to agree and ensure that members use the southern route for their imports.

It is expected that Kenyan President Mwai Kibaki will in the next two weeks commission the construction of a $327 million terminal, which is expected to increase the port’s container handling capacity from the current 771,000 to 1.2 million containers.

fkulabako@ug.nationmedia.com