Importers oppose new port levies plan by Mombasa County government

Importers have threatened to move to court to block the Mombasa County government from introducing a raft of port levies.

The Association of Importers of Kenya's national chairman, Mr Peter Mambembe, opposed the proposed levies, calling them illegal.

He argued that the port is a national asset, adding that it would be against the law for the county to impose charges on port users.

“Port users are already paying taxes to the National Government. If the county introduces the proposed levies, it will amount to double taxation,” he said.

Mr Mambembe added that the port was deemed an expensive facility and imposing new taxes would scare away both exporters and importers within and outside the country.

Speaking to the Nation on Sunday, he warned that the association would sue to block the county from charging the levies if the Mombasa County Assembly passes the proposed Finance Bill.

The county has proposed to introduce new levies at the port this financial year.

PROPOSED LEVIES

The county plans to introduce port health fees and charges as well as an export permit charge of Sh2,100 ($20) per tonne of cargo handled at the port and import clearance fee of Sh2,100 per tonne.

Each ship docking at the port will be required to pay an inspection charge of Sh6,300 ($60), with Sh2,100 for supervision and destruction of condemned goods.

The county also plans to charge $60 (Sh6,300) for spraying vessels against vectors and $20 (Sh2,100) for fumigation.

The Bill also proposes a levy of $40 (Sh4,200) per 20ft container and $80 (Sh8,400) per 40ft container and a fee of $5(Sh525) for bulk merchant goods.

For ship inspection taxes, the county will charge $60 (Sh6,300) for a ship of up to 1,000 metric tonnes, $110 (Sh11,550) for a vessel of between 1,000 tonnes and 3,000 tonnes.

A ship weighing between 3,000 and 10,000 tonnes will be required to pay $150 (Sh15,750) while those of between 10,000 and 20,000 tonnes will pay $200 (Sh21,000).

Vessels weighing between 20,000 and 30,000 tonnes will be charged $250(26,250) while those weighing over 30,000 tonnes to be pay $300 (Sh31,500).

On the other hand, the county proposes to charge $300 (Sh31,500) for a ship carrying between 50 and 100 people while a ship carrying more than 1,000 people will be charged $500 (Sh52,500).

The county also plans to charge $400 (Sh42,000) for food condemnation and sampling standard and $80 (Sh8,400) for ship water test requests per sample.

The Bill also proposes a charge of $700 (Sh73,500) for the inspection and licensing of a fishing vessel and a fee of $5 (Sh525) per tonne of cargo for radiation surveillance.

Last week, the county held a public forum at the Kenya School of Government in Mombasa where executive members Hazel Koitaba (Finance), Fatma Awale (Water), Francis Thoya (Land), Tumbo Odhiambo (Tourism) and Mohamed Abdi of Trade attempted to address concerns from various stakeholders.

BOOST COUNTY REVENUE

Mr Thoya said the county was yet to introduce the proposed port levies, adding that negotiations were still going on between the county and Kenya Ports Authority officials.

He explained that the county plans to introduce several levies at the port in order to boost its revenue collection.

“It should be noted that the port is in Mombasa. Therefore, the county deserves to charge some taxes to get revenue in order to provide better services to the public,” he said.

“We intend to introduce the new levies once we reach an agreement with shippers and the KPA management,” he added.

But reached for comment, KPA principal communications officer Haji Masemo said the port management was not aware of the county’s proposed port charges.

“The county has not involved the KPA management regarding the proposed port charges. We don’t know how they arrived on such hefty charges,” the port official said.

He warned that if the county introduces the levies, it will make Mombasa port to be the most expensive one in the world.

For the last two years, the county had attempted to introduce a port levy of $2 (Sh210) per tonne of cargo but in vain.

The KPA management rejected the county’s proposed port levy, saying the port is a national asset.