Kenya has announced the extension of the free storage period for transit cargo destined for specific East African Community (EAC) countries including; Uganda, the Democratic Republic of Congo (DRC), and South Sudan.
Speaking during a meeting with key stakeholders in Kampala on October 6, Betty Mkonyi, the Kenya Ports Authority (KPA) Country Representative to Uganda, said the extension has been increased from 9 to 15 days.
The directive to extend the free storage period is expected to boost trade between Uganda and Kenya.
Data shared by the Kenya Ports Authority in 2022 shows that Uganda accounts for 80 per cent of transit traffic at the Port of Mombasa.
Other countries that will benefit from the extended free storage period include; Rwanda, the Democratic Republic of Congo, and South Sudan.
Mkonyi further announced new rates for containers heading to EAC member states upon expiry of the free storage period.
After 15 days, containers stored at the port will incur charges of $30 (Ksh4,400) per 20-foot container and $60 (Ksh8,800) for a 40-foot container.
This amount will be revised after 21 days to $45 (Ksh6,600) and $90 (Ksh13,200) for 20-foot and 40-foot containers respectively.
On September 14, in a further win for President Yoweri Museveni, Kenya announced that it would remove deposit fees for containers carrying Ugandan goods at Mombasa Port.
“Almost 50 per cent of the costs incurred by most Ugandan traders go into handling port and transport expenses,” Kenya explained.
The deposit for the container is Ksh11 million; if the container is not returned on time, the entire sum is forfeited.
Former President Uhuru Kenyatta notably in March 2019 offered Uganda huge tracts of lands in Naivasha in what analysts described as an attempt to ensure the neighbouring country imports goods through Kenya.
