This archive report was first published on 8 June 2020.
Kenya-Uganda Row Over Naivasha Container Depot ¶
Kenya and Uganda are locked in a dispute over the use of the Naivasha inland container depot, with Uganda resisting a directive to clear all cargo destined for landlocked countries at the facility.
According to a letter written by Transport Cabinet Secretary James Macharia, the Kenyan government has extended several incentives to Uganda to encourage the use of the Naivasha ICD, including providing office accommodation for regional customs authorities and offering 21 days of free storage for goods.
However, Uganda is not amused, with the country's Minister of Transport, Katumba Wamala, stating that the use of the Naivasha ICD should remain optional. Uganda has invested heavily in the port of Mombasa and is concerned that using the Naivasha ICD would put their interests at the Coast at risk.
The dispute has been ongoing for several months, with Kenya trying to make the Naivasha ICD viable after months of inactivity. The facility is at the heart of Kenya's ambition to become the transport corridor of choice for neighboring countries.
Kenya has been trying to salvage the project, which has remained idle for six months, and is seeking to have the ICD fully operational in order to offset a Chinese loan used in the project. The loan is maturing, and Kenya is seeking to make the ICD viable in order to offset it.
Uganda, however, is not willing to budge, with the country's business community warning of potential job losses and investment losses if the directive is implemented. The Kenya Transporters Association has also expressed concerns, stating that the number of trucks plying the Northern Corridor will drop by more than half if the directive is implemented, leading to huge job losses.
It remains to be seen how the dispute will be resolved, with Kenya urging Uganda to be flexible and allow port users to make a choice between the two facilities.
