This archive report was first published on 8 June 2020.
Kenya and Uganda are at odds over the use of Naivasha inland port for transit goods, with Uganda rejecting the compulsory use of the facility due to lack of basic amenities.
Uganda's Minister for Works and Transport, Gen Edward Katumba, has written to his Kenyan counterpart, James Macharia, expressing concerns over the facility's capacity to handle imports intended for trans-shipment to Kampala and other neighboring land-locked countries.
According to Gen Katumba, the Naivasha Inland Container Depot does not have the capacity to handle imports, and the use of the facility should remain optional.
Uganda wants the Kenyan government to suspend a legal notice that made compulsory movement of cargo from Mombasa to the Naivasha ICD, arguing the facility has no basic amenities to facilitate cross-border trade.
Gen Katumba has asked his Kenyan counterpart to rescind the notice and address issues raised by transporters before implementing the directive.
Kenya has insisted that the directive must be implemented as the truckers' grievances are addressed.
Ugandan traders have the option to move their imports from the Mombasa port to Dar es Salaam, but the shift would see them cover significantly longer distances making it more expensive.
Kenyan logistics sector players have supported Uganda's position, saying infrastructure and cost of using the service is way above that of using trucks not considering the job loss to the sector due to the directive.
Kenya Transporters Association (KTA) executive director Denis Ombok said virtual meeting with Mr Macharia and the Transport Senate Committee members chaired by Kimani Wamatangi did not reach any agreement.
Mr Macharia has remained firm that the directive will be implemented as it was agreed at the EAC Heads of State meeting held on May 12.
According to tariffs by Kenya Railway Corporation, the transporting cargo using the SGR from Mombasa to Naivasha costs $600 for a 20-feet container and $850 for a 40-feet container of up to 20 tonnes and $910 for the same container weighing above 21 tonnes, and $1,500 to Kampala.
