Kenya Ports Authority (KPA) has recently declared an encouraging development for trade in the East African region.
In a meeting held in Kampala on October 6, Betty Mkonyi, the KPA Country Representative to Uganda, revealed that Kenya has decided to extend the free storage period for transit cargo bound for specific East African Community (EAC) nations. This initiative is anticipated to foster trade relationships between Kenya and its neighboring countries, including Uganda, the Democratic Republic of Congo (DRC), and South Sudan.
According to the latest data provided by the Kenya Ports Authority in 2022, Uganda dominates transit traffic at the Port of Mombasa, accounting for a significant 80 percent. This substantial figure underscores the importance of facilitating smoother trade routes for these nations.
The extension of the free storage period will further assist other EAC member states like Rwanda and the Democratic Republic of Congo, fostering economic collaboration in the region. Under the new directive, the free storage period has been increased from 9 to 15 days.
However, beyond this grace period, containers at the port will incur charges. For 20-foot containers, the fee stands at $30 (Ksh4,400), and for 40-foot containers, it is $60 (Ksh8,800) after the initial 15 days. These charges escalate to $45 (Ksh6,600) and $90 (Ksh13,200) for 20-foot and 40-foot containers, respectively, after 21 days.
This move is a significant boon for President Yoweri Museveni, as Kenya has also lifted fees for containers transporting Ugandan goods at Mombasa Port, marking a positive step in bilateral relations between the two nations.
Moreover, it reflects Kenya’s commitment to fostering regional cooperation, echoing former President Uhuru Kenyatta’s efforts in 2019 when he offered substantial land tracts in Naivasha to encourage neighboring countries like Uganda to import goods through Kenya.
Kenya’s proactive approach in enhancing trade ties not only underscores its role as a regional leader but also sets a promising precedent for collaborative economic growth among East African nations.
The extension of the free storage period and the removal of fees for Ugandan goods manifest Kenya’s dedication to promoting a vibrant and interconnected East African trade landscape.
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