KAM renews push for fewer agencies at port

Kenyan manufacturers are lobbying to have the number of clearance agencies at the Port of Mombasa reduced from about 28 to four to speed up movement of goods and cut on costs.

According to a proposal adopted by a joint task-force between the government and manufacturers, only the Kenya Revenue Authority (KRA), Kenya Ports Authority (KPA), Kenya Railways and Kenya Bureau of Standards (Kebs) will clear goods at customs.

Kenya Association of Manufacturers (KAM) chief executive Phyllis Wakiaga said the numerous agencies often caused, the cost of which was shouldered by importers.

“We have 28 agencies handing clearance at the port but in the paper we are pushing for just the four that we consider necessary. It is possible to cut them down to international standards and have a consolidated Certificate of Conformity (COC),” said Ms Wakiaga.

The plan to reduce inefficiencies comes amid an ongoing operation at the port that is meant to curb counterfeits and revenue leakage that has led to a lengthy clearance procedure as cargo piles up, leading to the losses by importers.

Shippers last year said that they incur at least Sh500 million in losses every year due to delays stemming from port inspection that take up to 14 days.

Importers usually have four days to clear their cargo from customs after which they then pay storage and demurrage charges.

The manufacturers’ lobby last year proposed that all government agencies should accept declarations contained in the COC issued by Kebs in efforts to speed up clearance.

Mombasa has at least 33 shipping lines and provides direct connectivity to more than 80 ports globally.

The government last year directed that all imports must be transported by Madaraka Express train to the Internal Container Depot in Embakasi, bringing to fore the role of Kenya Railways at the customs.