This archive report was first published on 10 June 2020.
Kenya-Uganda Rift Over Naivasha Container Depot ¶
Kenya and Uganda are locked in a dispute over the use of the Naivasha inland container depot, with Uganda opposing 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 period for goods.
However, Uganda is not amused by the directive, which was gazetted by the Kenya Revenue Authority (KRA) as a customs area on June 2, 2020. The country's Minister of Transport, Katumba Wamala, has stated that the use of the Naivasha ICD should remain optional.
Uganda's largest business conglomerate, Mukwano Industries, has warned of suing Kenya if it incurs losses due to the directive. In a letter to the Transport Cabinet Secretary, Mukwano Managing Director Alykhan Karmali stated that the company has been a regular user of the Port of Mombasa for 35 years and has never experienced such an act.
"We have been regular users of the Port of Mombasa for the last 35 years and have never experienced such an act. You and your staff are aware of the contractual carriage obligations that exist between the shipper, consignee and shipping lines," reads the letter.
Kenya is seeking to make the Naivasha ICD viable following months of inactivity, with the Chinese loan used in the project maturing. The country is hoping to offset the loan by having the ICD fully operational.
Uganda, however, argues that the use of the ICD should be optional, citing massive investment and job losses in the Mombasa port. The country's Transport Minister has urged the government to convene a meeting with 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 Mombasa port. 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 Revenue Authority (KRA) has stated that the Naivasha facility works on a one-stop centre model, where all government agencies will offer services.
Kenya moved the first consignment of cargo by Bolloré Transport & Logistics direct from Mombasa to the standard gauge railway station at Suswa near Naivasha on May 7.
