Juba-bound cargo stuck in Mombasa over payment mode standoff

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Cargo headed for South Sudan is stuck at the Port of Mombasa and custom bonded warehouses due to disagreements between importers and the country's revenue authority over the mode of duty payment.

South Sudan traders are protesting a directive to pay duty at the port entry in dollars instead of South Sudan pounds, saying it increases the cost of doing business.

Kenya International Freight and Warehousing Association (Kifwa) chairman Roy Mwanthi told The EastAfrican that pharmaceuticals, food and other goods are stuck in thousands of containers and vehicles in Kenya due to the standoff.

Mr Mwanthi said goods cleared as far back as November 20 have not moved out of the port due to the directive issued by South Sudan Revenue Authority (SSRA) that duty and taxes be cleared before the cargo is released from Mombasa.

He said the refusal by the importers to pay taxes has caused congestion at the port and container freight stations.“The traders want to be allowed to pay at the Nimule border in South Sudanese pounds,” Mr Mwanthi said.

In Mombasa, clearing and forwarding agents say they face high charges and are even threatening to stop handling South Sudanese cargo.“We have received invoices from the Kenya Revenue Authorities (KRA) to pay custom warehouse rent and other charges from government and private agencies due to delay in movement of the cargo. Thousands of containers are incurring storage charges, overnight charges for trucks and other demurrage charges as a result of delay in return of containers,” Mr Mwanthi said.

Mombasa Kifwa branch chairman Leonard Njiru said the practice is against the East African Community Customs Management Act (EACCMA) 2004, which only allows for use of bond or payment of duty for transit goods.“We wonder who will pay for the demurrages,” he said.

Clearing agents are threatening to stop handling South Sudan cargo until SSRA writes to shipping lines, agents and CFSs to grant a waiver of demurrage for all containers that arrived since November 20, 2024 until normal cargo movement is restored.

“We need assurances that KRA penalties, costs as a result of the delays -- which is not their fault -- is waived before handling any South Sudan-destined cargo in 2025,” Mr Njiru said.