KPA Extends Free Storage Term for Cargo at Port

In an effort to draw in more business, the Kenya Ports Authority (KPA) has announced the extension of the free storage term for container goods handled in Mombasa and dry ports upcountry.

Mombasa had poor cargo volumes last year due to increased competition from Dar es Salaam.

New offers from KPA have been made to transit importers as well as local importers who use Mombasa Port and the inland container depots (ICDs) in Nairobi and Naivasha.

“Cargo handled at the port [of Mombasa] and at different ICDs … have been offered 15 days free period from the current nine days while traders choosing to use Naivasha ICD will be given 30 days … from the current nine,” the announcement read in part.

Containers that stay longer than 15 days—between 16 and 21 days—will be charged $30 per day for 20-foot containers and $60 per day for 40-foot containers.

For cargo that will be stored for more than 21 days, KPA will charge $45 for a 20-foot container and $90 for a 40-foot container.

Kenya has announced fresh promotional incentives to traders utilizing the port and dispatched delegations to five nations that use Mombasa port in an effort to address important issues.

In order to lessen Mombasa’s overall cargo throughput share, Dar es Salaam is using the Northern Corridor, where high transportation costs, rising road tolls, numerous border fees, and poor road conditions have already been identified as factors that drive up costs for transporters.

Approximately 1.1 million metric tonnes (MT) of cargo were lost by Kenya to Tanzania last year, according to data compiled by the Kenya National Bureau of Statistics (KNBS).

The total cargo throughput at Mombasa Port dropped to 33.74 million MT in 2018 from 34.76 million MT in 2017, a 2.93 percent year-over-year decline that brought the volumes to their lowest levels since 2018, when they reached 30.92 MT.

According to the Northern Corridor Observatory Report, the Central Corridor’s cargo throughput increased during the same time period relative to Dar es Salaam, rising from 14.04 million MT in 2017 to 19.02 million MT in 2022.

The Kenyan delegation, led by Kenya Ports Authority Chair Benjamin Tayari and Managing Director Captain William Ruto, traveled to Uganda, the Democratic Republic of the Congo, Burundi, Rwanda, Burundi, and South Sudan last week to promote the port and make commitments to take steps to lower transportation costs.

The delegation gave traders in Uganda the assurance that KPA will also coordinate closely with the Kenyan embassy there to host business symposiums.

Kenya encourages the use of the Naivasha and Nairobi ICDs for cargo clearance in East African nations.

Since their establishment, the facilities have struggled to turn a profit, especially for transit commodities.