Kenya Ports Authority (KPA) is auctioning uncollected Cargo at Mombasa port a major facility for products imported by Uganda, Rwanda and other inland countries in the region.
The move aims at deconjesting the port but has in effect caused business losses to Uganda although Rwanda has not officially stated its position on the matter.
Kenya Revenue Authority has in recent months embarked on an aggressive drive to clear congestion at the port after traders complained of inefficiency caused by excess cargo lying at the facility.
KPA has started auctioning uncollected cargo after attempts to entice cargo owners using lower storage charges failed to yield much fruit.
In February KPA had reduced the period of free storage of import containers at the port of Mombasa as part of a 100-day moratorium to clear their cargo.
Free storage period for domestic import containers was reduced from five to four days while that for transit import containers was lowered to nine days from the current 11 days.
The auctions, coupled with improved work flow at the container terminals, has helped ease congestion at Mombasa port substantially.
Statistics by KPA showed that in July the container yard population at the port of Mombasa has dropped to a record 13,600 20-foot equivalent container units (TEUs) from 20,700 TEUs experienced during the infamous congestion period early this year.
The terminal’s capacity is 18,500 TUEs terminal capacity.
KPA managing director Gichiri Ndua, however, said Kenya was committed to serving the interests of all port users from the region.
“In our strategic plan, we aim to drop the Kenyan share of total traffic from 70% to about 65% and increase the share of the transit traffic to more than 30%,” he said.
The port is presently witnessing increased activity following improved economic conditions in the region.
UGANDA REACTS
Uganda is Kenya’s biggest export market. Rwanda is also reliant on Port Mombasa for major imports and exports. The auctions have simillary hurt businesses in Rwanda altho no official comment has been made.
The government of Uganda wants the auctioning of overstayed cargo at the port in Mombasa reviewed, saying it was hurting its businesses.
Uganda High Commissioner to Kenya Emmanuel Hatega claimed that some traders had lost fortunes after their goods were auctioned without their knowledge.
“Auctions should be both legally and ethically sound,” he said during a stakeholders meeting in Mombasa.
Hatega said some of the auctions were not carried out in “a proper manner”, leading to losses on the part of some businesses.
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