KPA Tarrif Review Stakeholders Meeting

Today, the SCEA Chair and CEO represented members at KPA’s stakeholder engagement on tariff review, held at Panari Hotel, Nairobi.

The shipping and logistics industry continues to face major challenges, including unfavorable government policies, unpredictable taxation, inflation, and the depreciation of the Kenyan Shilling against the US Dollar.

During the engagement, SCEA, alongside KIFWA, KFC, and FPEAK, opposed the proposed tariff, citing its potential negative impact on the industry. Key proposals included:

✅ Extending the free period to 9 days (excluding weekends and public holidays) to ease shippers’ burden—currently, they pay over KES 5 billion annually in storage fees.
✅ Providing attractive incentives for Lamu Port to become a transshipment hub, helping decongest Mombasa Port, which has suffered from increased transshipment activity.
✅ Reconsidering the proposed increase in port pass fees, which are set to rise by 200% to 500%.
✅ Reducing the plug-in cost from the proposed USD 2.5 to USD 1.
✅ Discouraging the proposed 51.3% increase in fuel handling charges through the pipeline.
✅ Ensuring the tariff revision accounts for economic challenges, as rising costs have already forced many businesses to shut down.
✅ Encouraging the use of Inland Container Depots (ICDs) through rebates, rather than additional charges.
✅ Supporting exports by offering competitive and attractive rates to boost trade.

Additionally, SCEA informed stakeholders that the proposed tariff review would increase the cost of imports and exports (per unit) by 17% to 27%, further straining businesses.

These recommendations aim to create a more sustainable and competitive business environment for the industry.