Imports to cost more after KPA increases tariffs

Traders will pay more for importing goods following a decision by the Kenya Ports Authority to increase cargo handling tariffs.  

This is the third time in two years that the ports authority has increased the fees.

KPA, which twice revised its main tariffs upwards in March 1, last year, has notified port users of its intentions to adjust the charges.

According to the authority’s proposals, there has been a five per cent increase in the costs of loading and discharging saloon cars, station wagons and vans (not exceeding 1.5 tonnes), effective Monday March 17. This means importers will pay $73.50 (about Sh6,500), up from the current $70, for this category of vehicles.   

In the new arrangement, tariffs for “self-propelled units” at the container freight station (CFS) shore handling saloon cars, station wagons, and vans (not exceeding 1.5 tonnes) have also gone up to $83.50, from $80, a 4.4 per cent increment.

Additionally, charges for self-propelled units (imports and exports) for these cars will attract a $67.50 tariff, up from $65, a four per cent increase. 

They include stevedoring, shore handling and wharfage charges. These are expected to go up by between $2.5 and $3.5 (between Sh212.5 and Sh297.5 each.

Storage for transit import containers and conventional cargo after the expiry of the free period is also set to go up by $7.50 to $22.50 (about Sh1,913).

Transit import containers have also had their free storage period reduced from nine to seven days.

WRONG TIMING

“The new tariffs are in accordance with changes in the operation of the business environment and are aimed at making the current tariffs more competitive,” a KPA email communication said.

It is understood that the proposals, which have been fiercely opposed by port users, have been adopted by the parastatal’s board.  

“This is not the time for an upward or downward review of tariffs. An increase or reduction in tariffs must involve stakeholders,” said Mr Gilbert Lang’at, chief executive of the Shippers Council of East Africa (SCEA), the regional lobby for cargo importers.

Other port users said they were ready to pass the new charges to consumers.

The Kenya Auto Bazaar Association (KABA), which is the industry’s lobby for importers of used cars, said it was ready to heap the additional charges on buyers.

“Any new charge will affect the prices of motor vehicles,” said Mr Charles Munyori, KABA’s secretary general.

Heavy duty vehicles like buses, trucks, tractors and forklifts not exceeding 10 tonnes will, however, pay 20 per cent less — from $500 to $400.

Construction vehicles and heavy duty equipment will attract $680, a reduction of 15 per cent.

Buses, trucks, tractors and forklifts will pay 12 per cent less from $665 to $580, while construction vehicles and heavy-duty equipment will pay $950, down from $1,065.

The statement added: KPA continues to make large capital investments to serve bigger ships calling at the Mombasa port, and it needs to compensate CFSs for their role in improving port efficiency, hence adjustment of the port tariff.