KPA Effects New Cargo Handling Fees

Kenya Ports Authority CEO William Ruto in ameeting with KPA officials.
Kenya Ports Authority Managing Director William Ruto in a meeting with KPA officials.
Photo
KPA

The Kenya Ports Authority (KPA) officially began implementing its new port tariff structure on Monday, December 22, ending a three-month delay that had pushed back the rollout from the original effective date of September 15.

In the KPA Tariff Book 2025, costs for key services have risen significantly, affecting almost every stage of port operations, from vessel docking and cargo handling to storage and licensing.

According to the KPA, “the new rates are meant to reflect current operational realities and finance ongoing modernisation projects, including digital transformation, infrastructure upgrades, and green port initiatives.”

Under the new charges, annual business licence fees have increased significantly, with specialised cargo providers now required to pay Ksh2.3 million, while truck operators handling water or bunkers will pay Ksh1.5 million each year. However, small service providers, such as weighing or bagging service providers, will part with Ksh 1.05 million each year.

Port of Mombasa preparing to unload MV He Yuan Shun 89 on January 10, 2025.
Port of Mombasa preparing to unload MV He Yuan Shun 89 on January 10, 2025.
Photo
Kenya Ports Authority

These new annual licence fees are a significant increase from under Ksh300,000, which had remained constant for a decade. The higher costs are a burden that small traders state would push them out of the market. 

At the same time, cargo storage charges have been raised significantly. Under the new structure, an imported container left beyond the free storage period will now incur a daily charge of between Ksh 9,000 and 15,000. For dangerous cargo, the daily rate for container storage has been set at Ksh 12,000, up from Ksh6,000, which was KPA’s initial charge. 

For shipping lines and vessel operators, tug and salvage services will now cost between Ksh450,000 and Ksh750,000, while mobile crane hire ranges from Ksh150,000 to Ksh300,000 per hour. Forklifts and tractors will cost up to Ksh67,000 per hour.

The revised penalties also introduce new fines for late or incorrect documentation. Exporters submitting cargo late will be charged Ksh15,000 per container. Additionally, any change in cargo destination (as indicated on the C-11 form) will incur a fine of Ksh15,000 per Bill of Lading.

Additionally, bulk importers of cement, steel, tiles, and paint will face higher prices as port handling charges for these materials increase by 20–30 per cent.

KPA explained that the delay in implementing the new tariff was prompted by extended stakeholder consultations, a court challenge by freight associations, and the need for system upgrades to integrate the new billing model at Mombasa and Lamu ports. 

Concerned, importers and transporters say the changes will deepen the cost-of-living crisis by increasing freight and logistics expenses, while clearing agents in Mombasa argue that demurrage and documentation penalties will likely be passed on to consumers.

Moreover, truck operators warn that higher licensing and storage fees will drive up retail prices nationwide.

Trucks are waiting for the loading of containers at the Port of Lamu for distribution inland.
Trucks are waiting for the loading of containers at the Port of Lamu for distribution inland.
Photo
Kenya Ports Authority