Court halts KPA tariff hike pending hearing of case
The Kenya Ports Authority’s plan to introduce new service tariffs from September 15, 2025, has been stopped by the High Court, disrupting the State agency’s financial projections.
Justice Jairus Ngaah issued the suspension after granting the Container Freight Station Association of Kenya leave to challenge the revised charges.
More To Read
- Youth, women urged to register as Mombasa gears to host first-ever logistics summit
- Housing levy funds surge to Sh73 billion despite slow project rollout
- Somalia raises Mogadishu port cargo handling to 250,000 units, positioning it to rival Mombasa, Dar es Salaam
- 18 State-owned enterprises to operate as Public Limited Companies in new Bill
- Tourism and agriculture leading in hiring as other sectors stumble
- Ship agents oppose KEPHIS pest inspection charges on shipping lines
“The grant of leave herein does operate as a stay of the respondent’s decision contained in the Tariff Book 2025 pending hearing and determination of the substantive notice of motion,” Justice Ngaah said.
The contested Tariff Book 2025 was released by KPA in August to replace rates that have been in place since 2012.
The changes affect several services, including marine operations, ship dues, stevedoring, shore handling, wharfage, storage, and other general port services.
Wharfage is a levy charged for goods passing through a port to cover the use of its facilities. Among the adjustments, trucking fees at the Mombasa port were raised from Sh3,000 to Sh15,000, while clearing and forwarding agents were introduced to a new annual licence fee of Sh38,772 ($300).
The freight station lobby is asking the court to nullify clause 15.5 of the Tariff Book 2025, which it says discriminates against container freight stations.
It also opposes the introduction of shore handling charges on CFS cargo, the higher stevedoring and wharfage rates, and the new “dirty cargo surcharge.”
The association argues that clause 15.5 favours inland container depots with preferential tariffs while excluding CFSs, even though both are recognised customs areas under the East African Community Customs Management Act.
According to KPA, the adjustments were in line with the authority’s mandate under Section 30 of the Kenya Ports Authority Act, CAP 391, 1978.
“These charges shall apply equally to all port users, including and not limited to shipping lines/agents, cargo agents, charterers, brokers, freight forwarders, consolidators, shippers, or consignees,” a notice stated last month.
However, industry stakeholders had criticised the new structure, citing sharp increases and additional charges.
Kenya Transporters Association chairman Newton Wang’oo said they were shocked by the rise in port pass fees from Sh3,000 to Sh15,000.
“The increment will not only affect Kenyan trucks but also other East African transporters who have other options for taking their trucks. We have Dar es Salaam right on our doorstep, and it can be another option,” Wang’oo said as quoted by the Daily Nation.
Clearing and forwarding agents have also taken issue with the introduction of a $300 (Sh38,772) annual operations licence fee, saying it is unlawful since they are already licensed by the Kenya Revenue Authority (KRA).
Top Stories Today
