(MOMBASA) – Thousands of containers destined for South Sudan remain stuck at the Port of Mombasa after new Kenyan tax rules and strict storage limits disrupted trade, risking losses of millions of dollars for local importers.
Hamid Abdellatif, a clearance agent for South Sudanese importers, told media that traders are unable to pay taxes upfront in Kenya, forcing many to abandon their goods.
“Previously, South Sudan containers, units and fuel moved swiftly from the port without problems. But since October last year, with taxes required at Mombasa, many traders failed to pay and goods have been left stranded. There are more than 3,000 to 4,000 containers stuck now,” Abdellatif said.
He explained that South Sudanese importers face stricter conditions than neighbouring countries. Private Container Freight Stations in Kenya now allow only 14 days before high storage fees begin, whereas Uganda, Rwanda and Congo receive 60 to 90 days of free storage.
Vehicle suppliers and other traders report that penalties and additional charges are draining their businesses. “We are paying very high damages, around $20 (SSP 142,000) per day, per unit. It has been a real struggle,” said Abdellatif.
He warned that the situation will worsen unless both the Kenyan and South Sudanese governments intervene. “We need three things: nomination of containers back to clients, taxation to be processed at Nimule, and a waiver for all stuck cargo. Without these measures, goods will remain stranded, costs will rise, and consumers will suffer.”
Traders emphasised that, without reforms to taxation and storage regulations, the backlog in Mombasa will continue to inflate the cost of essential goods for South Sudanese consumers.
Kenyan Tax Rules Stall South Sudan Imports
| Key Issue | Details |
|---|---|
| Container Backlog | 3,000 to 4,000 units stuck at Mombasa |
| Storage Limit | 14 days before high fees apply |
| Fees per Unit | $20 per day (SSP 142,000) |
| Comparative Countries | Uganda, Rwanda, Congo: 60 to 90 days free |
| Cause of Delay | New Kenyan tax rules, strict storage limits |
| Trader Requests | Container nomination, taxation at Nimule, waiver of fees |
| Impact on Traders | High penalties draining businesses, risk of abandoning goods |
| Impact on Consumers | Increased cost of essential goods |