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Yes Africa > Blog > Africa Development > Kenya unveils cashless policy for imports
Africa DevelopmentEconomy

Kenya unveils cashless policy for imports

Christabel Airo
Last updated: 2024/09/02 at 5:54 PM
Christabel Airo
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Kenyan importers have been relieved of the perplexing fees imposed on containers at the Port of Mombasa, enabling them to evade demurrage fees associated with delayed clearances.

This action, following a similar initiative in Tanzania, was prompted after shippers and clearing agents reached an agreement that permits importers to address any charges for damaged containers upon returning them to a shipper, rather than before receiving their cargo as was the previous practice.

Four shipping companies, including CMA CGM and MSC/Ocean Freight, alongside shipping agents and over 25 per cent of clearing firms, have signed a memorandum of understanding with Viaservice Company.

This agreement will safeguard containers while permitting importers to transport their cargo to its destination. The company will enable those who agree with it to process their goods and only resolve any outstanding fees when returning the container this week.

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Typically, shipping lines charge $500 for 20-foot containers and $1,000 for 40-foot container guarantees (CG) in cases of lost, damaged, or unclean returned containers. Goods meant for neighbouring countries face higher costs, with importers paying $1,000 for a 20-foot container and $5,000 for a 40-foot one, depending on associated risks.

The approach has been in place in Tanzania since 2020, allowing importers to clear goods while ensuring the commercial interests of shipping lines and agents are fully protected, rather than requiring importers to deposit funds with agents.

Viaservice has provided guarantees for shipping lines or agents on behalf of registered customs agents, freight forwarders, and shippers, who then relinquish the fees associated with the container.

In Kenya, traders can clear multiple containers simultaneously, addressing the common congestion at the Port of Mombasa caused by delayed clearances as traders work through paperwork, making this a more favourable situation for business people in Kenya.

TAGGED: kenya, Trending News
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