This archive report was first published on 9 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 to his Ugandan counterpart, the Kenyan government has extended several incentives to encourage the use of the Naivasha ICD, including office accommodation for regional customs authorities and a 21-day free storage for goods.
However, Uganda is not amused by the directive, which was gazetted by the Kenya Revenue Authority (KRA) on June 2, 2020, and is set to take effect on the same date. The Ugandan government argues that the use of the Naivasha ICD should be optional, citing massive investments and job losses in the port of Mombasa.
Uganda's Minister of Transport, Katumba Wamala, had previously stated that the use of the Naivasha ICD should remain optional, but the Kenyan government is adamant that the gazetted date of June 2, 2020, still stands.
Chief Executive Officer of the Shippers Council, Gilbert Langat, has urged the government to convene a meeting of Transport ministries from both countries and the private sector to resolve the current standoff.
Truck drivers have also resisted the Naivasha ICD order, citing job losses and investment in the port of Mombasa. The Kenya Transporters Association has warned 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.
Kenya is yet to secure funding for the final phase of the Standard Gauge Railway (SGR), which will link the country to the Malaba border and connect it to Uganda's rail line. The Chinese funding for the last phase of the SGR to Malaba had been pegged on the willingness by Uganda to build its part from the Kenyan border to Kampala.
