Kenya has kicked off policies to salvage shrinking cargo business at its ports due to competition from the port of Dar es Salaam.
Cargo owned by governments in the region will be handled by the Government Clearing Agency (GCA) while other policies include cutting port charges and doubling the storage period for transit cargo.
Kenya is scrapping destination charges, affording importers from the landlocked East African Community partners using the Port of Mombasa a saving of up to $1,200 per 40-feet container.
Salim Mvurya, the Cabinet Secretary for Mining, Blue Economy and Maritime, issued a circular directing government agency to clear cargo through the Kenya National Shipping Line (KNSL).
“I’ve sent a circular to all government departments about the clearance of their cargo by KNSL under GCA,” Mvurya said on October 23.
According to the minister, the move is meant to revitalise the institutions, which have capacity to contribute to Kenya’s economy, and to ensure safety and confidentiality in clearing of sensitive government cargo.
This will see private clearing agencies lose lucrative deals and over 20 million metric tonnes of cargo.
Data from the Kenya National Bureau of Statistics indicates that about 52 percent of cargo cleared at different border points belongs to government ministries, departments and agencies.
