Businesses and traders are up in arms over the Kenya Ports Authority’s (KPA) plan to increase tariffs on at least 25 services at the ports of Mombasa and Lamu, as well as Inland Container Depots (ICDs). The proposed hikes, some rising fivefold, have sparked fears of increased costs on imports, exports, and consumer goods.
The tariff review, guided by consultancy firm Maritime Business and Economic Consultants, suggests higher charges on services such as pilotage fees, mooring services, container handling, and storage penalties. Notably, vessels docking at Kenyan ports will see their minimum charges rise from $150 (Sh19,387) to $200 (Sh25,850) per call, while resident vessels will pay an annual fee of $1,000 (Sh129,250), up from $600 (Sh77,550).
For cargo operations, dry general cargo handling costs will increase from $7.50 (Sh969) per tonne to $8.50 (Sh1,098). Charges for motor vehicle imports, petroleum products, and containerized goods will also see a 30% rise.
One of the most contentious proposals is the increase in storage charges for containers exceeding free periods. For domestic cargo, a 20-foot container will now attract a $55 penalty, up from $45, while a 40-foot container will cost $105, up from $90. Transit containers will also see similar adjustments.
These proposed changes come amid stakeholder engagements, with KPA meeting shipping industry players in Mombasa, Nairobi, and Kampala, before proceeding to Rwanda.
According to the consultancy firm, the adjustments are based on inflation, equipment maintenance, fuel, and labor costs, as well as a comparison with regional ports like Dar es Salaam and Djibouti. “The input of stakeholders is critical in refocusing on regional competition,” said managing partner Omae Nyarandi.
However, the Shippers Council of Eastern Africa (SCEA) has strongly opposed the changes, warning of dire economic consequences. SCEA chief executive Agayo Ogambi noted that container handling costs could increase by 20% to 27%, further burdening businesses. “KPA charges are already denominated in USD, cushioning it from currency fluctuations,” he argued, citing the shift in exchange rates from Sh85 per USD in 2012 to Sh129 today.
Ogambi also expressed concerns over the impact on exports, especially perishables, which are already suffering due to high freight costs and Red Sea disruptions. “All these costs will ultimately be passed to consumers,” he warned, urging KPA to reconsider the review in light of the current tough business environment.
