(Nairobi) – County levies, logistical inefficiencies, and security concerns are impeding trade within the East African Community (EAC), according to industry experts. While Mombasa Port has recorded impressive growth in cargo handling, stakeholders argue that unresolved challenges in Kenya and the region are slowing overall trade progress.
Counties along Kenya’s Northern Corridor, which links Mombasa Port to landlocked countries, have been imposing multiple levies on cargo to boost local revenue. Key counties on this route include Mombasa, Taita Taveta, Makueni, Machakos, Nairobi, Nakuru, Uasin Gishu, and Busia.
In August, Busia County proposed new fees: KSh1,000 ($6.70) per entry for foreign trucks and KSh400 ($2.70) for domestic trucks, in addition to a KSh500 ($3.35) parking fee. Other counties charge trucks up to KSh3,200 ($21.45) in combined parking and entry fees.
These levies undermine efforts to streamline cargo movement, despite efficiency gains at Mombasa Port. Cargo dwell time has improved to an average of 3.5 days, with turnaround times to landlocked countries at six days.
Impact of Levies and Logistics Bottlenecks
| Issue | Effect on Trade |
|---|---|
| County levies on cargo | Increased costs, slowed transit |
| System downtimes (customs) | Disrupted cargo clearance, higher importer costs |
| Poor road networks (e.g., DRC) | Delays in cargo delivery |
| Insecurity in some regions | Threatened safety of cargo and personnel |
John Deng, Executive Secretary of the Northern Corridor Transit and Transport Coordination Authority (NCTTCA), emphasized that transit cargo should be exempt from such levies to avoid hindering trade. During a visit to the Nairobi Inland Container Depot, Deng reiterated the need for counties to avoid becoming trade barriers.
Shippers Council of Eastern Africa CEO Agayo Ogambi noted that while counties are entitled to generate revenue, this should not come at the expense of smooth trade operations. He called for a balance between revenue collection and trade facilitation.
Kenya Revenue Authority’s Integrated Customs Management Systems (iCMS) has also come under scrutiny for frequent downtimes. Traders report increased costs and delays in clearing cargo, with some describing the disruptions as a significant obstacle to trade efficiency.
Mombasa Port’s Growing Performance
Despite these challenges, Mombasa Port continues to expand its capacity and throughput. Between January and October 2024, the port handled 33.8 million tonnes of cargo, up from 29.6 million tonnes during the same period in 2023. Container traffic rose by 24.2%, from 1.3 million twenty-foot equivalent units (TEUs) in 2023 to 1.6 million TEUs this year.
Kenya Ports Authority (KPA) Managing Director William Rutto attributed this growth to increases in containerized cargo and liquid bulk shipments. Projections for 2024 suggest that the port will achieve 40.5 million tonnes in throughput, including 480,241 TEUs in transshipment traffic and 13.4 million tonnes in transit cargo.
The port is also on track to surpass its revised annual container traffic target of 1.8 million TEUs, with estimates pointing to 1.97 million TEUs by year-end.
While Mombasa Port’s performance highlights its role as a regional trade hub, experts stress that addressing systemic bottlenecks—such as levies, road infrastructure, and customs inefficiencies—will be critical for sustaining growth and fostering seamless trade within the EAC.