The Kenya Ports Authority (KPA) has suggested raising the fees for handling cargo by 20-27%. This change is expected to make imports more expensive and may worry traders and shipping businesses.
The new fee plan was shared on Tuesday and aims to increase revenue for KPA. However, many people are concerned about how this will affect the economy.
Under the new plan, ships coming to Kenyan ports will have to pay much higher annual fees, going up from Sh77,550 to Sh129,250. This is a big increase for shipping companies.
Additionally, the cost to handle dry cargo will rise from Sh969 to Sh1,098 for each tonne, which is a 13% increase just for this type of cargo.
Other services, like container handling and storage, will also see price increases of between 20% and 27%, according to the draft tariff schedule from KPA.
KPA’s Managing Director, Captain William Ruto, said the changes are needed to cover rising costs and to improve facilities at the Port of Mombasa and other locations. He believes this will help maintain good services while keeping up with rising costs in the world.
However, the announcement has caused concern among people in shipping and import businesses. The Kenya Shipping Agents Association (KSAA) warned that these price increases could lead to higher prices for goods, which would be a burden for consumers.
KSAA Chairman, James Mwangi, said, “This will make imports more expensive when businesses are already facing challenges.”
Importers also share these concerns, saying that the increased costs could disrupt their supply chains and reduce profits. Aisha Omar, a Mombasa trader dealing in electronics, said, “A 27% increase is significant. It will affect everything from raw materials to finished goods.”
The proposal is open for feedback from the public, and KPA is inviting comments from stakeholders before it gets final approval from the Ministry of Transport.
If approved, the new fees might start as early as April 2025, depending on regulatory approval.
Economists have warned that raising fees at this time, when fuel prices are also going up and global trade is uncertain, could add more pressure to rising prices in Kenya.
KPA and industry players are still in discussions, and the outcome will likely affect business costs at one of East Africa’s busiest ports.
