Uganda asks Kenya to resolve Mombasa port parking fees standoff
It is estimated that Kenyans own more than 80 percent of the trucks on the Mombasa-Uganda route. Photo / File
What you need to know:
- Last year, the Mombasa County Government entered into an agreement with Kenya Ports Authority and the port community, allowing the Authority to collect Shs19,929 (Ksh700) per day as truck parking fees
Private Sector Foundation Uganda (PSFU) has asked Kenya Ports Authority to resolve a standoff that continues to threaten the evacuation of cargo at Mombasa port.
Speaking in an interview yesterday, Mr Kenneth Ayebare, the PSFU director of transport and logistics and the chairman of CM Cargo Consolidated Transporters Association, said Uganda's reliance on Kenya's ports and logistics infrastructure makes the country vulnerable to disruptions, which could negatively impact trade.
However, he also urged government to expedite development of domestic logistics infrastructure, such as Bukasa Inland Port, which he noted could provide a more reliable and efficient solution for trade needs.
“As a landlocked country, Uganda needs to prioritise investments in logistics infrastructure to mitigate risks associated with relying on neighboring countries' infrastructure. By doing so, Uganda can reduce its vulnerability to disruptions and improve its competitiveness in the region,” he said, noting that increased parking levy is likely to drive up the cost of trade for Ugandan businesses, given that transporters are likely the additional expense consumers.
Last year, the Mombasa County Government entered into an agreement with Kenya Ports Authority and the port community, allowing the Authority to collect Shs19,929 (Ksh700) per day as truck parking fees.
However, transporters, through Road Haulers Association, which represents owners of more than 1,500 trucks, are opposed to the levy and have said it will continue to rally its members not to pick cargo from Mombasa port until when the levy is reduced to about Shs2,847 (Ksh100).
Mr Ayebare said the standoff over parking fees is likely to have a significant impact on Uganda, given that the country heavily relies on the port as a major gateway for both imports and exports.
It is estimated that Kenyans own more than 80 percent of the trucks on the Mombasa-Uganda route.
As a landlocked country, Uganda depends heavily on Kenyan transporters to move its goods to and from the Mombasa port.
More than 85 percent of the transit cargo through Mombasa is destined for Uganda.
The South Sudan Freight Forwarders Association has already expressed concern over the impact of the levy and the standoff, highlighting the value of interconnectedness in regional trade and the need for cooperation to resolve such disputes.
Mr Ayebare also noted that apart from setting up Bukasa Inland Port, it was important that government expedites the development of the standard gauge railway, whose delay presents a missed opportunity for Uganda to reduce its dependence on Kenya's ports.
