Cost of clearing cargo at port to increase

KIFWA Chairman Roy Mwanthi [left] with the association's member Leonard Njiru during its AGM at Mombasa Sports Club, October 19, 2023. [File, Standard]

The cost of clearing cargo from the Port of Mombasa will rise following a decision by customs agents to increase their fees.

The Kenya International Freight and Warehousing Association (Kifwa) has announced that the new standardised pricing for all cargo passing through the port will enable their members to realise better profits.

Roy Mania, the national chairman of Kifwa, said clearing agents, also known as customs agents, have long been subjected to exploitation by importers who pay them minimal fees.

“As members, we have chosen to establish a standardised pricing structure for all cargo entering or exiting the port to prevent exploitation by importers and exporters who have taken advantage of the disorganisation among clearing and forwarding agents,” Mwanthi said.

Starting December 1, importers will pay a minimum charge of Sh15,000 to clear a 20-foot container, with agents having the discretion to charge higher fees if they wish.

Mwanthi said all clearing agents across the country will now adhere to the new standardised pricing, and any violations will result in a fine of Sh100,000 for non-compliance with the agreed terms.

Additionally, rogue members who repeat such violations more than twice will face expulsion, as Kifwa will request the Kenya Revenue Authority (KRA) to remove them from the registry of clearing and forwarding agents.

To clear a 40-foot container, importers will be charged Sh25,000, a significant increase from the current situation where some agents are paid as little as Sh5,000, which is considered inadequate in the industry.

The new pricing structure also stipulates that clearing a vehicle with a 2000cc engine will cost Sh15,000, while those with engine sizes ranging from 2001cc to 3000cc will incur a charge of Sh20,000, and vehicles exceeding 3001cc, such as buses, will now cost Sh30,000.

Mwanthi expressed concern about the practices in various parts of the country where brokers are earning substantial commissions from unsuspecting car buyers in Mombasa.

During the meeting, members said with the rising cost of living, it was only fair to increase their charges to achieve a reasonable profit margin.

Mwanthi cautioned members against accepting low rates from multinational companies, which often offer subpar compensation.

“We consider it our right to demand fair compensation,” Mwanthi added, noting that the low pay endured by their members over the years has led to diminished income.