President Uhuru Kenyatta’s directive triggers fear of job loss at Mombasa port

By PATRICK BEJA

Mombasa,Kenya:Clearing and forwarding agents have expressed job loss fears following a presidential directive allowing their Ugandan and Rwandan counterparts to clear their goods from Mombasa port.

The agents said they are worried the directive by President Uhuru Kenyatta allowing the foreign clearing agents and Customs officials to clear cargo from Mombasa will render them redundant.

Kenya International Freight and Warehousing Association (Kifwa) estimated yesterday that up to 500,000 direct jobs in the sector could be lost if neighbouring countries clear their goods and collect taxes from the port.

Kifwa national chairman Mr Boaz Makomere said in Mombasa such a loss will be counterproductive to the Jubilee plans to create jobs and will also affect business negatively for nearly 700 Kenyan clearing and forwarding companies that will lose business to Uganda and Rwanda.

“The Government has not consulted us on this initiative and we totally reject it because it will cause massive loss of jobs,” Makomere protested.

Kifwa officials said in a signed statement that Uhuru’s plan will also hurt Kenyan transporters and loss of income for nearly one million Kenyans eking a living along the Northern Corridor and border stations.

And they also protested the President’s decree will force local insurance companies lose business and pleaded with the Government to rescind its directive to allow for consultations.

“We appeal to the Government to suspend implementation of the said programme to pave way for wider consultations, and to allow time for comprehensive negotiations of a multilateral agreement which will include participation of the private sector,” Makomere said.

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He was flanked by Kifwa national vice chairman Stephen Raiji, national secretary Ms Margaret Daudi, national treasurer Mr Timothy Maina, Mombasa branch chairman Mr Roy Mwanthi and Nairobi branch chairman Ms Grace Chege.

The new directive is set to be effective from August 1.

Kifwa represents 1,200 corporate members in the country.

A recent tripartite meeting between Uhuru, Uganda President Yoweri Museveni and Rwanda President Paul Kagame held in Entebbe to review progress of regional integration led to the radical order to allow landlocked countries including South Sudan to collect import duties from the port to improve trade efficiency along the Northern Corridor.

Mr Makomere said such initiatives should allow full participation of key stakeholders.