Business between Kenya and Uganda has been made smoother with new trade regulation

• Ugandan businesses now have an extended free storage period of 15 days at the Port of Mombasa, providing relief for product clearance. 
• Inland Container Depots (ICDs) in Embakasi and Naivasha will also offer extended storage periods of 15 days and 30 days respectively for products passing through. 
• Failure to clear goods within the allotted time will result in daily charges, emphasizing the importance of timely clearance for Ugandan businesses.

In order to clear their products, Ugandan businesses passing via the Port of Mombasa now have 15 days of free storage.

According to a notification from the Kenya Ports Authority’s managing director, Mr. William K. Ruto, the days have been expanded from only nine.

The notification further said that products passing through the Inland Container Depots (ICD) in Embakasi would be given 15 days of free storage instead of nine, while those passing through the ICD in Naivasha would be given 30 days instead of nine.

“Kenya Ports Authority wishes to announce to customers in the transit markets the extension of storage free period for containerized cargo handled at the port of Mombasa and ICDs,” as seen in the notice.

Nevertheless, the notification also stated that once items are not cleared within the allotted time, charges will start right away. For example, a 20-foot container would be subject to a daily charge of $30 (Shs111,000) in 16 to 21 days and $45 (Shs166,500) in 22 or more days.

In contrast, a 40-foot container that is not cleared after the specified time will be assessed a daily price of $60 (Shs222,000) for the first 16 to 21 days. However, if the container is still not removed after 21 days, the rate will be increased to $90.

The Kenya Ports Authority did not state the reasons for the prolongation, although this may have been due to the global supply chain disruption, which has affected a number of industries and important importers. Uganda is Kenya’s largest foreign customer of its ports, which serve as the country’s primary seaport.

For instance, according to pre-Covid-19 figures, Kenya handled at least 7.4 million tonnes of Uganda’s imports in 2019, up from the 6.5 million tonnes reported in 2018.

Data also shows that South Sudan, which transited 563,663 tonnes of its imports through Kenya over the same time period, is in second place after Uganda. DR Congo is the next nation, having imported 413,249 tonnes through the biggest economy in East Africa.

Kisumu port, which provides Uganda with up to six million gallons of petroleum products each month, is also where the country obtains its fuel.