Mombasa port raises cost of clearing cargo at

The cost of clearing cargo from Mombasa will rise significantly following a deliberate decision by customs agents to review their fees upwards.

This move will increase the cost of doing business at the port which is likely to hit the end users hard.

Led by the Kenya International Freight and Warehousing Association (KIFWA), the agents have set new minimum fees charged by clearing and forwarding agents effective 1st December 2023.

“The cost of living has gone up, fuel has gone up in Kenya. It has affected the operations of our work making the cost of offering our services very high,” said KIFWA Chairman Roy Mwanthi in Mombasa after meeting agents who unanimously ratified the guidelines.

“While we are clearing goods worth millions of shillings in terms of containerized goods or clearing motor vehicles from Sh5 million and above clearing and forwarding agents are being paid as low as Sh2,000,” he said.

As a result of the low payments, many agents cannot maintain their officers, impeding efficient service delivery based on current market rates.

Minimum charges

“The minimum charges will guide the clearing and forwarding agents to enjoy the benefits of their work,” he said urging motor vehicle showroom operators to comply with the guidelines.

KIFWA chairman for Mombasa Leonard Njiru said they are handling numerous cases of importers in Rwanda, Congo, South Sudan and Uganda having been swindled of money by the quacks.

“KIFWA will also release the list of all agents that will be authorized to transact business as a customs agency. The guidelines are geared to professionalize and streamline the clearing and forwarding business to weed out quacks masquerading as agents,” said Njiru.

He added that an agent who doesn’t follow the guidelines, the first offender will be penalized Sh100,000 the second offender will pay Sh300,000 thereafter will be expelled from the association risking losing their operating license.

For local exports, a 20-foot container will be charged $100 (Sh14,900) and a 40-feet container will be charged $ 150 (Sh22,000), whereas a transit cargo through Mombasa Port will be charged $100 (Sh14,900) for a 20-feet container and a bigger container of 40-feet will be charged $200 (Sh29800)

For transhipment cargo, a 20-feet container will have to pay $100 (14,900) and a 40-feet will pay $200 (29,800).

For the importation of a vehicle, a local importer will pay Sh15,000 for a vehicle of up to 2,000 cc, and Sh20,000 for a vehicle of up to 3,000 cc.

For vehicles above 3,000 cc, buses, trucks, and special vehicles, the local importers will pay Sh30,000 per unit for clearance services.

For those exporting vehicles beyond Mombasa, the charges will be $150 (Sh22,000) for vehicles of up to 2,000 cc, $150 (Sh22,000) for vehicles up to 3,000 cc, and $200 (Sh 29,800) for vehicles above 3,000 cc, buses, trucks and special vehicles.

Tax evasion

The agents noted that disorganisation in the industry has seen quacks take over the sector, leading to a surge in cases of tax evasion, where importers allegedly collude with unscrupulous clearing and forwarding agents.

KIFWA said the new changes will also enable the Kenya Revenue Authority (KRA) predict the revenue collectable from the industry based on the minimum guidelines.

Mwanthi said the emergence of unfair business practices in the industry has led to undercutting, giving importers the advantage of underpaying genuine agents.

He decried members retiring after working for 30 years heading home empty-handed because of quacks who pose as middlemen between importers and clearing and forwarding agents.

“Quacks don’t pay taxes, permits, licenses, they just sit in coffee shops and make orders and at the end of the day they take home the lion’s share while we take peanuts,” he said.

Changes in sourcing loan

Sources of loans have also changed for consumers, with bank branches being replaced by digital lenders.

An earlier government survey highlighted that over 80 per cent of Kenya’s adultpopulation utilises mobile money providers in what is a surge in digital financial services, attributed to the growth of digital lendersand loans after the introduction of M-Shwari in 2012. M-Shwari allows M-PESA customers to save and access loans. Prior to this move, Kenyans primarily relied on family, friends, banks and the Saccos for loans.

According to the research, at least six trends are reshaping Kenya, including digitisation ofwork, home and school, health awareness, shifts in culture, a newmedia landscape and acceptance of illegal drugs, especially cannabis.

Along with finance, the Wakenya research found that the digitisation trend has affected the insurance and media sectors, the latter of whichhas been hit hard.

In the insurance sector, digitisation is transforming business modelsthrough Artificial Intelligence and cloud computing which has improved underwriting, risk assessment and claims.

The media landscape has been taken over by digitisation which is revolutionizing traditional media, which has led to the rise of new digital channels and adecline in old business and delivery models.

The rapid advancements in technology have enabled new players to enter the market with disruptive business models that attract audiences quickly, with existing players relying on partnerships, acquisitions and new service offerings to secure their positions in the ever-changing media landscape.

It has also opened new avenues to produce, distribute and monetise content. The study further reveals that many Kenyans access news, movies and music throughthe internet, a growth that has coincided with thefall of legacy formats like radio and newspapers which are currently facing reduced audience numbers. Out of those polled, only 6 per cent said they read newspapers

E-shopping embraced

“Withthe leading internet destination being social media, the competition for Kenyans attention by major social networks is high. TikTok subscriptions have risen fastest to 49 per cent at par with YouTube, which suggests the short-video format is a trend to watch,”the survey notes.

Established platforms like YouTube and Instagram have already imitated the upstart TikTok. The study also indicates that Kenyans have embraced e-shopping and e-learning, with one out of three Kenyans having now shopped online through Facebook and Instagram as opposed to impersonal storefront websites, platforms that allow businesses to sell their products without a personalised touch. E-learningtrends are also growing, in tandem with internet growth, with 27 of those polled saying they acquired an online education

Accordingto the research, a rise in recreational drug usage especially cannabis and miraa is a trend that is on the rise, with the study revealing that  9 per cent usethese drugs incontrast to the falling use of cigarettes.