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Covid-19 Pandemic Disrupts Kenya's Logistics, Increases Storage Costs

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 7 July 2020.

July 7, 2020

Container traffic handled at the Nairobi Inland Container Depot fell from 39,320 in January to 26,200 in March, a decline of 33%.

The Shippers Council of Eastern Africa (SCEA) has called for an extension of the free cargo storage period for local imports to cushion them from additional costs.

According to SCEA, shippers are footing storage costs of between $68,660 (Sh7.3 million) and $135,310 (Sh14.4 million) weekly.

Operations at the Inland Container Depot (ICD) have been affected as most senior personnel from the Kenya Ports Authority (KPA) and the Kenya Revenue Authority (KRA) work from home and clearing agents are not allowed to access offices.

The average truck turnaround for local imports rose from 4.5 hours in January to 9.36 hours in March, while the truck turnaround time for the return of empties rose from an average of 3.5 hours in January to 8.9 hours in March.

"We are disappointed to note that the same treatment has not been given to local import containers, which only enjoy four free days and yet the same problems that are impacting transit containers are also impacting local containers," said SCEA.

Transit time for truckers has also been prolonged due to cross-border challenges as a result of the Covid-19 pandemic and its containment measures.

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