Boost for traders as KPA raises free-storage days

Containers at the Inland Container Depot in Nairobi. FILE PHOTO | NMG

By ANTHONY KITIMO
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Summary

• Transit export containers will be charged after the expiry of 20 days from the current 15 days.
• Those using the Mombasa port and Nairobi inland container depot ( ICD) will now have 14 free days from nine.
• Importers and exporters incur charges of between Sh 3,000 and Sh9,000 per day for cargo that has stayed beyond the free storage period and more than 24 days, depending on the size of the container.

Kenya Ports Authority has heeded the call by traders to increase free storage period to cushion them from the adverse effects of the Covid-19 pandemic.

In the extensions announced this week, those using Naivasha Inland Container Depot (ICD) for transit are the biggest beneficiaries after the authority introduced 30 free-storage days for the next six months.

Domestic importers who were left out during the extension period in May 2020 have also been awarded one more day from the current four to clear their cargo without incurring any storage charges.

To entice more countries to use Naivasha ICD, KPA has also introduced a number of rebates depending on the volumes imported as a means to counter Tanzania which has since offered a number of incentives in its bid to outshine the Port of Mombasa in terms of business share.

“Following the expiry of the free storage period on 13th November 2020, we would like to inform our esteemed customers that we have extended free storage period. The extension of free storage period will be valid for 90 days with effect from 10th December 2020 at the Mombasa Port and Nairobi ICD while for Naivasha it will run for six months,” said KPA managing director Rashid Salim.

“The authority further announces that the new volumes based transshipment rebates aimed at enhancing the transshipment volumes through our port will take effect from December 13th this year and detailed information packs about the rebates are available at our customer desk.”

In the new free period extensions, KPA has increased the number of days for domestic export containers from nine days to 15 days in a bid to woo local export using Mombasa Port.

Countering Tanzania

Transit export containers will be charged after the expiry of 20 days from the current 15 days.

Those using the Mombasa port and Nairobi inland container depot ( ICD) will now have 14 free days from nine, a move that has been welcomed by port users.

“We are encouraged by KPAs move as we continue to struggle with the Covid-19 pandemic. We hope the new storage free period will stay until logistics sector recovers fully from the pandemic to entice more traders to use Port of Mombasa,” said Roy Mwanthi, the Kenya International Freight and Warehousing Association (Kifwa) chairperson.

The storage terms first came into effect on May 18, and ran for three months to August 18. They were extended to November 13, as KPA moved to cushion importers, exporters and transporters from the impact the pandemic has had on the transport and logistics sector.

Importers and exporters incur charges of between Sh 3,000 and Sh9,000 per day for cargo that has stayed beyond the free storage period and more than 24 days, depending on the size of the container.

Containers released by the Kenya Revenue Authority and not collected after 24 hours are charged Sh10,000 and Sh20,000 per day for 20ft and 40ft respectively.

The new move will counter Tanzania Ports Authority (TPA) who waived 100 percent port storage charges, targeting Rwandan and Democratic Republic of Congo (DRC) cargo.