Households should brace for an increase in commodity prices as Kenya Ports Authority plans to increase tariffs on at least 25 services at its facilities, mainly Mombasa, Lamu and Inland Container Depots.
The move will impact shippers’ costs, traders, clearing agents, port service providers, transporters, among other users, who are likely to pass the costs to consumers.
This is on the advice of consultancy firm–Maritime Business and Economic Consultants, owned by former KPA top managers that bagged a Sh14.8 million contract to guide the review of service charges by the state corporation, last reviewed in 2012.
The tariffs include pilotage fees, tug services, mooring services, light dues, port and harbour dues, dockage, buoyage and anchorage, supply of fresh water, salvage and towing operations, stevedoring, container handling charges, storage charges and penalties.
They also cover port access charges and ferry services, among others.
Annual licenses will range between $450 (Sh58,268) and $15,000 (Sh1.9 million) for ship equipment suppliers, contractors, cargo handling equipment providers with specialised cargo services providers paying the highest amount.
All other businesses operating within KPA facilities, including M-Pesa shops, retailers, newspaper vendors, oil companies, and others will also part with a higher amount to be licensed.
Annual port access fees are also set to go up with ordinary passes set to increase to Sh3,000 while VIP will cost Sh6,000.
Saloon car passes will go for Sh5,000 annually with lorries, tractors, cranes and other heavily machinery owned by private firms paying Sh15,000, once the new tariffs come into place, with daily entry fees also available.
According to managing director William Ruto, the KPA Tariff 2025 edition will be published and shall take effect from September 15, 2025.
“Kenya Ports Authority wishes to notify its customers and other stakeholders that it has completed the process of reviewing charges for services rendered to vessels calling at its seaports and to cargo consignments handled at the ports and ICDs and obtained the requisite approvals for implementation,” Ruto said in a notice.
Vessels will pay up to Sh7,500 (Sh 971,148) on annual fees depending on ownership, capacity and other operational terms, in annual fees in addition to other port services.
Vessels other than those exempted, or paying an annual fee will be subjected to a minimum charge of $180 (Sh23,307) per call up from $150 (Sh19,422), in addition to other service charges.
Other adjustments have been made on container handling fees, storage charges, tug services among others.
According to the Shippers Council of Eastern Africa (SCEA), costs per container is expected to to go up by between 10 and 15 per cent for imports and between two and five per cent per for exports.
“We are yet to fully complete the analysis of the tariff lines impact but this will depend heavily on what costs the shipping lines pass to the shipper and, or how much they will be willing to absorb from the increases,” SCEA chief executive Agayo Ogambi told the Star.
He said port stakeholders had hoped that the review would be stayed further given the current associated business challenges.
“.. but KPA insisted that they need additional resources to address the infrastructure gaps and meet expansion programme costs including the acquisition of adequate equipments to handle the growing businesses. We also note the introduction of some new charge-port greening and conservation. Our further analysis will see how many of our recommendations were conspired, what tariff lines remained same, witnessed increases, etcetera,” Ogambi said.
Traders also hoped that the free five days storage period would be working days as opposed to consecutive days, including weekends and public holidays, as shippers continue to suffer increased storage costs.
“To whom more is given, more is expected. We shall demand more from KPA and will explore mechanisms to secure compensation and rebates for any delays occasioned by them. We expect KPA to announce itself in improved service offering to shippers and shall demand as such,” said Ogambi.
Clearing agents are however opposed to the increases mainly on licensing saying the move will hurt businesses and increase costs of doing business at the ports.
“We object and reject in capital letters,” former Kifwa national chairman Roy Mwanthi, who also runs a clearing business, said.
SCEA said it had also hopped KPA would introduce attractive rates for Lamu Port to attract more traffic and business, especially transhipment.
“We however commend KPA for sustaining some of the 2012 tariff lines, no increase and for some adjustments following the stakeholders' engagements,” Ogambi said.
