The Kenya Ships Agents Association (KSAA) has moved to court seeking to block the State from scrapping a raft of fees on container handling services at the Mombasa Port.
The government earlier this month scrapped Sh45,659.14($300) in unlawful fees imposed for container services by shipping lines and some State agencies at the port, handing relief to importers and consumer households.
The move followed an audit by a Presidential technical committee formed to review charges after an outcry by port users.
Some shipping lines had introduced a raft of levies contrary to a directive by the Kenya Maritime Authority (KMA).
For example, major shipping lines had been charging equipment management fees, ex-border charges, late documentation per bill of lading fee, container cleaning fees, and import documentation fees among others, which were revoked by Tanzania Shipping Agencies Corporation that runs the rival Dar es salaam port.
KSAA however termed the decision by the State as harmful to their businesses and demanded deeper consultation.
“The guidelines would have a direct and deleterious effect on the businesses of our members in that they essentially prohibit them (members) from imposing numerous charges and fees,” said KSAA Chief Officer Juma Ali Tellah said in a filing through a law firm, Oraro and Company Advocates.
KSAA contended that these guidelines would essentially force its members to provide services without compensation, despite being businesses with obligations to various entities.
“The notice, to the extent that it relates to charges and costs imposed by the petitioner’s members on their customers, would have a direct and deleterious impact on their businesses as it would limit their income and impede cash flows thus disrupting the flow of business and would hinder the growth of the maritime industry at the port,” said Mr Tellah in a supporting affidavit.
