CFSs lose battle over KPA's revised tarrif book

The High Court in Mombasa has declined to quash the Kenyan Ports Authority (KPA) Revised Tariff Book 2025 that gives preferential tariff treatment to Inland Container Depots (ICDs) while excluding Container Freight Stations (CFSs). 

The CFS Association of Kenya said clause 15.5 of the revised tariff book 2025 and the shore handling charges applicable to CFS cargo give undue advantage in favour of the government-owned ICDs over the privately owned CFSs, yet the two are basically in the same business, where they act as “extensions” of the port.

According to the Association Chief Executive Daniel Nzeki, the tariffs published in July 2025 give preferential treatment to ICDs over CFSs in storage and handling charges.

In a petition before Justice Jairus Ngaah, Nzeki applied to have the decision contained in clause 15.5 quashed to eliminate the preferential tariff treatment to ICDs while excluding CFSs.

However, Justice Ngaah declined to stop KPA from implementing, enforcing, or giving effect to the impugned provisions of the Tariff Book 2025.

Justice Ngaah said there was public participation and a presentation by the Association on the Tariff Book 2025.

“The fact that the tariff book 2025 was not amended in the manner recommended by the applicant does not, ipso facto, render the exercise inconsequential. In the final analysis, I find no merit in any of the grounds of judicial review upon which the applicant’s application is predicated. The application is hereby dismissed with costs,” said Justice Ngaah.

In the suit, Nzeki sought to compel KPA to undertake meaningful stakeholder consultation, impact assessment, and cost-benefit analysis before introducing or revising tariffs.

The lobby also wanted KPA to establish non-discriminatory tariff structures that ensure equal treatment of CFSs and ICDs as recognised customs areas under law. Nzeki also sought to have KPA align tariff structures with regional benchmarks to safeguard the Port of Mombasa’s competitiveness as a regional trade hub. He asked the court to declare that the impugned tariff provisions are unconstitutional, unlawful, discriminatory, and procedurally unfair for failure to comply with Articles 10, 27, 47, and 232 of the Constitution and the Fair Administrative Action Act.

Further, Nzeki accused KPA of imposing “shore-handling charges” on CFS-bound cargo and asked the court to quash the revised stevedoring and wharfage rates.