The Kenya Ports Authority (KPA) has done away with a Ksh436,473 deposit fee imposed on every container headed to Uganda.
The fee that is charged at Mombasa Port was scrapped in a bid to ease business for Ugandan traders.
This resolution was arrived at during a meeting on Thursday between KPA Managing Director Captain William K. Ruto and officials from Uganda’s Foreign Ministry led by Permanent Secretary Vincent Bagiire in Mombasa.
According to a statement released by Ruto, port expenses account for almost 50 per cent of expenses incurred by Ugandan Traders.
“If these costs were mitigated, price levels would fall significantly,” the statement read in part.
The captain remarked that the move was aimed at maintaining smooth relations between both countries, especially considering Uganda is a key trading partner for Kenya.
Moreover, it was revealed that the traders are required to pay a surcharge of Ksh5,819 daily, 15 days from the day their goods arrive at the port, which is an extra burden to them.
Further, if the traders fail to return the container within the stipulated time, then the initial Ksh436,473 deposit is forfeited.
For a long time, the traders had opposed the fee claiming it increased their import costs. It, therefore, goes without saying that Uganda welcomed the changes with open arms.
“This is a good development. Our traders have been losing a lot of money because of those fees. Now that the fees are going to be removed, it gives us hope that there is going to be a promotion of businesses," Thadeus Musoke Nagenda, the Chairperson of Kampala City Traders Association stated referring to the fee removal.
Similarly, PS Bagiire echoed Nagenda’s sentiments, emphasizing the importance of member states being committed to regional transport infrastructure for regional integration and trade.
The Ugandan minister also called for the elimination of all regional trade barriers between the two countries.
