Nairobi – Players in the logistics industry have warned that new levies planned by counties on the Northern Corridor could raise the cost of doing business and discourage traders in the region from using Kenya’s seaport. Through their finance Bills, 16 counties on the Northern Corridor have proposed introduction of levies on cargo passing through their territories to boost internal revenues. These include Mombasa, Makueni, Taita Taveta, Machakos, Nairobi, Nakuru, Uasin Gishu and Bungoma counties.

"It has been brought to our attention that various counties along the Northern Corridor have formulated Finance Bills intended to raise funds under various heads,” the Kenya Maritime Authority director-general Nancy Karigithu said in the letter dated October 2.

She said the levies were illegal, adding they could impede trade in the region. Mombasa has sought to introduce transit charges and branding fees on trucks.

For shipping lines, Mombasa’s Finance Bill proposes an export permit fee, import clearance fee, fumigation fee and supervision and destruction fee for condemned cargo each at $20 per tonne.

High fees

The county also proposes to charge $60 per ship for inspection and for spraying vessels against vectors, including a transport infrastructure development levy of $2 per tonne of cargo handled at the port. Industry players say the charges could impact negatively on competitiveness of the Mombasa port, which already has high handling fees.

The facility has faced stiff competition from the Dar port, which is currently undergoing expansion.