The Kenya Maritime Authority (KMA) has announced that at least eight fees at the port of Mombasa have been stopped with immediate effect following an order by President William Ruto.
In a statement, KMA added that the decision was meant to cut the cost of destination charges at the port of Mombasa.
Destination charges are fees collected when cargo finally reaches the port.
Some of the fees stopped with immediate effect are the X-border fee, equipment management/monitoring fee, late documentation fee, and container protection essential.
Others are depot charges at drop-off points, logistic fees, import documentation fees, and transit corridor fees.
"Terminal Handling Charg (THC) raised as a destination charge to be stopped with immediate effect. Recovery of any KPA services to shipping line to be factored in the ocean freight" read part of the statement.
The International Ship and Port Facilities Security (ISPS) Code as a destination charge has also been stopped with immediate effect. Where necessary it will be incorporated in the ocean freight.
"Manifest Amendment fee to be capped at a maximum of Ksh4,500 (USD30) inclusive of KRA Amendment fees," read the statement in part.
The letter from KMA acting Director General John O. Omingo also directed ship agents to extend working hours at the administration offices to 4 p.m. on Saturdays to minimize delay penalties during the weekends.
These were some of the new guidelines to resolve the high cost of destination charges, local repair of containers, and abuse of dominance by certain operators.
On containers, KMA announced that the demurrage charges will cease upon failure to return an empty container after 90 days and the replacement value of the container will be demanded after that.
Demurrage fees are paid for the use of a container within the terminal beyond the free period.
