Foreign Affairs PS Karanja Kibicho. PHOTO | FILE | NATION MEDIA GROUP
What you need to know:
For over a year now, all South Sudan cargo has been handled by a single clearing company and two Container Freight Stations (CFSs), sparking uproar among stakeholders who said the deal was irregular and discriminatory.
The Kenya Ports Authority (KPA) has suspended exclusive handling of cargo destined to South Sudan after intense pressure from stakeholders and two ministries.
For over a year now, all South Sudan cargo has been handled by a single clearing company and two Container Freight Stations (CFSs), sparking uproar among stakeholders who said the deal was irregular and discriminatory. The ministries of Transport and Infrastructure and Foreign Affairs also opposed it.
In September last year, Mr Twalib Khamis, KPA manager in charge of operations instructed shipping lines to direct all cargo to Compact Freight Station following its partnership with Panda Clearing and Forwarding Company which he said had been appointed by the government of South Sudan.
This was to reportedly ensure security of goods and proper documentation, but port users and the two ministries protested the move, and accused cartels of exploiting South Sudan importers by imposing unnecessary charges.
On July 4, Foreign Affairs PS Karanja Kibicho raised questions over the arrangement in a letter to Kenya Revenue Authority commissioner general John Njiraini, . “Implementation of this decision poses a number of challenges with adverse operational and legal implications. Consequently, we have informed the GoSS through its embassy to suspend the directive,” said Dr Kibicho.
His Transport counterpart Nduva Muli followed up this communication with KPA managing director Gichiri Ndua on September 3. “The purpose of this letter is to instruct you to suspend, forthwith, reservation of all South Sudan cargo to selected facilities until further notice,” he wrote.
The directives were not effected, prompting a heated debate among port users during the Friday morning meetings at KPA headquarters.
Ugandan business community representative William Kidima wondered why South Sudan cargo had been subjected to huge levies by being transferred to CFSs, making it very expensive to clear burdening to consumers of the new state.
“We handle all our transit cargo at the port at a cost of $158 (Sh13,588) for a 20-foot container and $236 (Sh20,296) for the 40-foot unit. But if they are transferred to a CFS costs can run up to three times more depending on the facility,” he said noted. “South Sudan is a growing economy and other East African states must support the country and not encourage exploitative trade practices.”
But last Friday, Mr Khamis wrote to stakeholders informing them of the new development. “We have received instructions that we suspend the arrangement of reservation of South Sudan cargo to selected CFS facilities until further notice. Consequently with immediate effect all South Sudan cargo will be handled regularly. This is for your information and compliance,” he said.
However, the arrangement did not apply to government cargo which will be handled by the clearing agent.
