Summary
- Since the disease was first detected two months ago, essential supplies for Kenyan businesses especially Small and Medium Enterprises (SMEs) have been cut off.
- KPA, in a statement told Shipping &Logistics that the port had already started to experience a decline in some commodities in the last three months.
The outbreak of coronavirus has immensely interrupted supply
chain across the globe, with trade hubs such as Kenya bearing the brunt.
Since
the disease was first detected two months ago, essential supplies for
Kenyan businesses especially Small and Medium Enterprises (SMEs) have
been cut off, leaving them fighting to stay afloat.
Data
from the Kenya Ports Authority (KPA) indicates that four ships from
China have failed to dock at the Port of Mombasa since the virus broke
out, with the country’s exports to the Asian nation dropping by 11.3 per
cent.
KPA, in a statement told Shipping &Logistics
that the port had already started to experience a decline in some
commodities in the last three months.
"There is an
anticipated effect on the throughput in the following months from
February given the reduced trading volumes with China as a major trading
partner," said KPA managing director Daniel Manduku in the statement .
The Port of Mombasa, he said receives three big dischargers
(import) from China under evergreen line and one state owned China Ocean
Shipping Company (COSCO) ship on monthly basis.
“These
four ships have not called since the coronavirus effect in China. That
implies there would be no or very little export for china during the
period. We have also lost on average two ships call for loading at Base
Titanium,” Mr Manduku said.
As Kenya is a regional
transportation hub, serving as an entry point for imports into regional
land-locked countries such as Uganda, Rwanda, South Sudan, Burundi and
DRC, slowdown in port activity is bound to be felt across the borders.
KPA
said it was yet to quantify the business loss yet, adding that if the
virus threat is not contained soon, it expected reduced number of
vessels, especially from China going forward.
"This volume reduction will also have an effect in revenue collection," KPA said.
China
is the largest buyer of the country's Titanium, mined in Kwale County.
The minerals earned Base Titanium close to Sh20 billion in 2018, with 55
percent going to China. Treasury earns over Sh1.4 billion annually in
royalties from the exports of the minerals.
Now the
virus is threatening all this and more. Some traders relying on China
imports are contemplating closing down their shops due to inadequate
stock and they fear situation might get worse if the disease is not
contained.
Kenyan's imports, mostly electronics,
cosmetics and surgical gears, are reported to have been stuck in China
because suppliers have never returned due to travel restrictions.
Ruweida
Hussein, a Mombasa businesswoman said she plans to close the shop since
she has not imported any cargo since the beginning of the year.
"We
are counting losses since we have nothing to sell yet Mombasa County
has hiked business permit charges. This is a blow to us and we might be
forced to seek other alternatives to sustain our lives," said Ms Ruweda
who owns a stream of boutique shops in Mombasa.
The
Importers and Small Trader's Association chief executive officer Samuel
karanja said that they have lost almost Sh30 billion since the outbreak
as traders goods are stuck in China, with factories not working.
China
is Kenya's single largest source market, accounting for about a fifth
of Kenya's annual total imports. Chinese imports to Kenya in the
January-November 2019 period amounted to Sh324.90 billion, or 20.3
percent of Sh1.6 trillion import bill, slightly lower than Sh346.87
billion a year earlier on reduced imports of machinery for the standard
gauge railway (SGR).
"The travel advisories, coupled
with lockdown across Chinese cities have greatly affected our business.
We are now being forced to look for alternative markets," Mr Karanja
said.
The processing of cargo has also been affected
with Shippers Council of Eastern Africa (SCEA) saying there has been an
increase of vessels' dwell time as different port States have put in
place mechanisms to screen all crew members and inspect all vessels
entering their ports.
SCEA executive director Gilbert
Lagat said they are taking stock on the impact of the virus as the
number of small scale importers unable to travel to China to do business
increase.
Mr Lagat said maritime is global and
traders, both importers and exporters, should expect a delay in their
cargo considering different countries have instituted stringent measures
in a bid to avoid spread of the diseases.
"Shipping is
a global business and with many ships doing transshipment, they are
avoiding China while some are taking more time in screening and
inspecting crew and vessels respectively which in turn will affect time
of import and ultimate cargo imports," said Mr Lagat.
"As
it is, small scale traders who import in a pool will be mostly affected
as a number of countries have denied traders visas to visit China and
different countries. We have had reports of small scale importers who
personally go to do business being denied visas. This will ultimate
affect the number of consolidated imported cargo which account for
substantive percentage of throughput."
KPA health
department has already introduced drastic measures to ensure all
imported cargo and vessel crew members entering the port are
disease-free.
The port's general manager, operations
and harbour master, William Ruto has directed all vessels and crew
members who have visited China in the past 14 days to fill maritime
declaration health form stating their health status before arriving into
the Kenyan waters.
"All vessels arriving from China or
might have passed through China should send in advance crew list and
voyage memo for the purpose of getting details of the crew and movement
of the vessel for the last 14 days respectively and a valid ship
control/exemption certificate," read part of the notice sent to vessel
owners by KPA.
China imports to Kenya have dropped by more than Sh58 billion since coronavirus struck two months ago.
According
to provisional imports data from Kenya Trade Network Agency (KenTrade),
imported cargo in January and February through the Port of Mombasa and
Jomo Kenyatta International Airport dropped from Sh160.102 billion to
Sh101.46 billion compared to the same period last year.
KenTrade
manages the National Electronic Single Window System (KenyaTradeNet
System) which is an online platform that serves as a single entry point
for parties involved in international trade and transport logistics to
lodge documents electronically on goods imported or exported in the
country.
Since the outbreak of the deadly COVID-19 - a
disease caused by coronavirus infection, Beijing responded by temporary
closure of business to manage the spread of the epidemic whose vaccine
is yet to be found.
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