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KPA slashes rates by half to lure importers to Lamu Port

NEWS
By Benard Sanga | May 20th 2021
Aerial view of freight ship with cargo containers on the sea. [Courtesy]

Ships and importers at the Lamu Port will now pay half of the cost they incur at the port of Mombasa.

In the new tariffs published by the Kenya Ports Authority (KPA) in a bid to lure traders to use Lamu port, stevedoring charges have also been reduced by 40 per cent.  Stevedoring is the loading or offloading of cargo from the ship.

In a notice signed by KPA acting Managing Director Salim Rashid that was released on Thursday, the loading and unloading of motor vehicles will cost 40 per cent less. 

Shore handling and wharfage services, which involve loading and discharging of domestic and transit cargo, will also attract a 40 per cent discount.

Goods dropped at Lamu by big ships before they are transported to other small ports will enjoy a 30 per cent free storage period.

"A 20-foot container will be charged Sh920 (USD10) from 31-60th day while 40ft container will attract Sh1,840 (USD20),” reads the tariff notice which indicated that transit cargo will enjoy a 30-day free period.

Thereafter, a 20ft container and 40ft container will attract Sh3,680 (USD40) and Sh7,360 (USD80) respectively.

Domestic cargo will enjoy 15 free storage days. Between the 16th and 18th day, USD30 will be charged for a 20ft container while a 40ft container will attract USD 60.

Containers staying for 27 to 35 days will attract USD40 and USD80 for 20ft and 40ft containers respectively. Thereafter, importers will pay ShSh4,140 (USD45) and Sh8,280 (USD90) for 20ft and 40ft containers respectively.

Imports and committed export empty containers will enjoy a 15-day free storage period and thereafter will attract Sh1,380 (USD15) and Sh2,070 (USD22.5) for 20ft and 40ft respectively.

Domestic motor vehicle will enjoy 15 days free storage period while transit and transhipment will enjoy 15 days and 30 day free storage period respectively.

KRA has installed both the Integrated Customs Management System (iCMS) and Simba Systems to ensure the 24-hour clearance.

KRA chairman Francis Muthaura said they will also give highly concessionary rate in a bid to attract business to the new facility.

He said paperless customs clearance will ensure the decision-making process is quick, transparent and simplified thereby reducing the time and cost of doing business.

 

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