Port players protest levy on nuclear screening

Cranes offloading containers from MV Jolly Giada LOA at the port of Mombasa on March 6 2024 [ File, Standard]

Concerns are mounting among shippers, agents, and regional trade bodies after fresh directives by Kenya Nuclear Regulatory Authority (KNRA) introduced mandatory radiation screening for all cargo at the Port of Mombasa, alongside a Sh1,000 per container fee.

 Industry players warn that the additional cost coming on the heels of earlier charges imposed by Kenya Plant Health Inspectorate Service (Kephis) risks compounding delays, inflating the cost of doing business, and eroding the port’s competitiveness in the region.

 In a recent notice to importers, exporters and licensed cargo agents, Kenya Nuclear Regulatory Authority (KNRA) said containerised cargo must pass through monitors stationed at strategic points, such as Mombasa port and Inland Container Depots (ICDs).

 “These monitors will provide non-intrusive, highly sensitive detection of gamma and neutron radiation. All legitimate radioactive sources must be accompanied by a valid KNRA import license. Accurate documentation, including the correct harmonised system codes, is required,” said KNRA in the notice.

 The implementation start date was first set for May 1 this year but later deferred to July 2026 to allow more consultation.

 This container screening will be done at a cost of Sh1,000, a cost that stakeholders have termed unnecessary.

 “Importers and agents must ensure truck drivers and terminal operators follow designated traffic flows to avoid bypassing security checkpoints,” said KNRA, urging cooperation with the authority and multi-agency teams to minimise clearance delays.

 This latest directive comes a year after Kenya Plant Health Inspectorate Service (Kephis) introduced Sh2,000 for vessel inspection and Sh375 per container cleaning at the port to control pests and diseases.

 Kenya Ships Agents Association (KSAA) Chief Executive Elijah Mbaru while opposing the charges said Kephis’s ship and container levies will have a major impact on shipping business.

 But Kephis Managing Director Prof Theophilus Mutui defended the levies saying the move was aimed at reducing pest importation through the containers and cargos.

 This week, Shippers Council of Eastern Africa (SCEA) Chief Executive Agayo Ogambi said they were concerned on the possible impacts that will be caused by the screening for nuclear.

 “We appreciate the importance of securing the country from possible effects of nuclear and radioactive materials not authorised or approved, but we are more concerned on the possible delays in cargo clearance time and increased costs,” he said.

 He argued that the port throughput has increased exponentially, resulting to delays, congestion due to limited capacity, forcing shippers to wait longer for clearance of their consignments. 

 Instead of imposing its different levies, Ogambi proposes that the government introduces appropriate funding mechanisms for all the agencies facilitating trade at the port.

 Ogambi suggests the setting up of a single fund where agencies offering additional safety and control measures can draw funds for their operations instead of the fragmented levies.

 “We urge the government to engage the private sector to explore appropriate funding mechanisms for the agencies facilitating trade,” he said.

 “Establishing a pool government service fee which will be in a kit that will support services offered by the National Environment Management Authority, Kephis, Agriculture and Food Authority, Kenya Bureau of Standards, KNRA and all other agencies could help stabilise the cost of operation for the businesses.”

 Ogambi noted that the agencies could draw their money for services provided from the fund instead of introducing individual levies at the port.

 “There may not be adequate funding, but having each agency levy their services is costly and hurts the businesses,” he noted.

 He added that with the Kenya Ports Authority limiting its free period to five days, delays that will arise from the screening for nuclear will be catastrophic and costly.

 “We hope to engage the nuclear authority to discuss on the standard operating procedures they can deploy, capacity and if there are any exemptions, how payments shall be made,” he stated.

 He noted that if the KNRA order affects cargo from transit countries, then further engagements with the landlocked countries should also take place.

 “Unfortunately, if the other regional ports become more competitive than us, then we may lose the regional market which currently stands at 30 per cent of the total port throughput,” he said.

 SCEA says exceptions could be made for exports from the screening requirement unless the importing countries make it mandatory.

 He argued that protecting the country from port of loading would be more effective and the nuclear authority could also consider a risk-based inspection.