(JUBA) – South Sudan’s government says a new security levy introduced by Kenyan authorities is increasing the cost of transporting goods to the country. The Ministry of Transport confirmed that each container heading to South Sudan will now pay a security fee of $,5000 (five thousand United States Dollars), which is about SSP 35, 500,000 (thirty five million five hundred thousand South Sudanese Pounds) at the current informal rate of $1 = $7,000) seven thousand one hundred South Sudanese Pounds.
National Transport Minister Rizik Zakaria Hassan made the announcement after returning from an official assessment visit to Kenya. He told reporters in Juba that his team found major differences in the fees charged on containers heading to different regional destinations.
The minister said that goods bound for Kenya pay a security fee of one thousand United States Dollars, goods for Uganda and the Democratic Republic of Congo pay one thousand five hundred United States Dollars, but the charge for containers heading to South Sudan is five thousand United States Dollars. He stressed that these costs are levied before the goods even reach the border.
He warned that the total cost of moving one container to South Sudan can reach six thousand United States Dollars when all charges are added.
Fee Comparison
| Destination | Fee in USD | Fee in SSP |
|---|---|---|
| Kenya | 1,000 | 7,100,000 |
| Uganda | 1,500 | 10,650,000 |
| DRC | 1,500 | 10,650,000 |
| South Sudan | 5,000 | 35,500,000 |
| Total to reach South Sudan | 6,000 | 42,600,000 |
The minister explained that traders already face added pressure due to distance, limited infrastructure, logistics challenges, roadblocks, and security concerns along the route. He added that the government will continue engaging Kenyan authorities to address these concerns.
He also revealed that Kenya had earlier given South Sudan importers only fourteen days to return containers to Mombasa, while traders moving goods to Kenya or Uganda were given up to forty five or sixty days. After discussions, the two countries have now agreed to extend South Sudan’s return period to forty five days. He said this will give traders more time and reduce penalties resulting from delayed returns.
Ladu Lukak, Chairperson of the South Sudan National Chamber of Commerce, supported the minister’s remarks. He noted that transport procedures had changed and become more costly. He said containers that previously moved directly from Mombasa to Juba are now first transported to Nairobi and then moved onward to South Sudan. According to him, this change adds extra loading and offloading costs of two hundred United States Dollars for each stage.
Lukak said that the Chamber of Commerce has raised its concerns with Kenyan counterparts, arguing that the additional handling process increases expenses for traders and pushes up the final price of goods in South Sudan.
The government says it will continue to hold talks with Kenya to ensure fair charges and smooth trade between the two countries, as South Sudan depends heavily on imported goods that pass through the Port of Mombasa.