This archive report was first published on 10 September 2019.
Kenya Ports Authority (KPA) has seen its profits soar to Sh15.5 billion after tax in the 2018/2019 fiscal year, largely thanks to hefty storage levies imposed on importers.
According to the KPA's financial performance, the agency collected Sh48.4 billion from operations revenue, while spending Sh34.8 billion on the same period, leaving a net profit of Sh15.5 billion.
The increase in earnings was attributed to the new demurage tariffs that took effect last year, reducing the free period for cargo to stay at port facilities.
Under the new tariffs, cargo owners are charged Sh4,000 for a 20-foot container and Sh8,000 for a 40-foot container if it stays at the Inland Container Depot (ICDN) for six days.
Additionally, importers are given a day to collect their cargo after being cleared by the Kenya Revenue Authority (KRA), failure to which they are charged a punitive fee of Sh10,000 for a 20-foot container daily and Sh20,000 for a 40-foot container.
Importers have cried foul over the storage levies, claiming they are crippling their businesses and have even sought the intervention of President Uhuru Kenyatta to address the bottlenecks at the Port of Mombasa.
President Kenyatta directed acting Finance Secretary Ukur Yattani and Kenya Revenue Authority Director General James Githii to call a crisis meeting to discuss the issues raised by importers and local leaders.
Among the issues outlined in the meeting include the implementation of the Integrated Customs Management System (iCMS), nomination of cargo, and the implementation of the government directive on reducing the number of agencies handling cargo.
