Mombasa traders decry high taxes, cargo clearance delays

Mounting frustration is gripping Mombasa’s business community as traders, clearing agents, and elected leaders call on the national government to urgently revise tax policies and decentralized cargo clearance procedures at the port, citing crippling economic effects.

Fast Action Business Community and local stakeholders say the current tax regime is not only burdensome but also actively choking enterprise.

According to Salim Karama, a representative of the group, the high taxes imposed on businesses have forced many to shut down, leaving empty stalls and shuttered shops in their wake.

“We no longer have a functional business ecosystem in Mombasa. Traders are closing down operations because they can’t keep up with the punitive levies. The system is not sustainable,” Salim said.

He urged the government to re-evaluate its fiscal policies, warning that continued indifference would deepen the economic downturn.

But taxation is not the only concern.

Old Town Member of County Assembly (MCA) Abdirahman Hussein has also raised alarm over persistent bottlenecks in the cargo offloading process at the Port of Mombasa.

According to him, what used to be a streamlined system has now become a logistical nightmare.

“Business is grinding to a halt due to prolonged delays in container clearance. What once took a day or two now drags on for a week or more. The inefficiencies are unbearable. These delays translate to costly demurrage fees, inflated storage charges, and ultimately, lost revenue,” stated Abdirahman.

The MCA, alongside traders and clearing agents, is specifically taking issue with the Kenya Revenue Authority’s (KRA) Centralised Release Operations (CRO), a policy shift that centralises the clearance process in Nairobi.

Under this system, Customs Release Officers are stationed in the capital and remotely approve container releases, regardless of the container’s physical location.

“This policy has backfired,” said MCA Abdirahman. “Containers are sitting in Mombasa, but someone in Nairobi who hasn’t seen them has to authorise their release. That’s inefficient and frustrating.”

He pointed out the irony that one of President William Ruto’s first executive orders upon assuming office in 2022 was to return port operations to Mombasa, a move hailed as a win for the coastal economy. Yet, two years later, stakeholders say the decentralisation promised is being quietly undermined.

“The port was brought back, but now we are witnessing a silent reversal. This CRO system is reversing the gains we made,” Abdirahman said.

Traders and clearing agents are now demanding that KRA officers stationed at the port and various Container Freight Stations (CFS) be granted full authority to handle releases. They argue this would drastically reduce turnaround time and restore efficiency.

“We are tired. We used to have release officers at each CFS unit. Today, we are dependent on officers in Nairobi. It’s contrary to the law, and it’s killing our businesses,” said trader Abu Muhsin.

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• Mombasa traders decry high taxes
• cargo clearance delays

Some traders have gone as far as threatening legal action should the Ministry of Transport and KRA fail to act.

Human rights advocate Harriet Mugenda has thrown her weight behind the traders, describing the CRO system as detrimental to the entire Coastal economy.

“Decentralisation was a step toward economic justice for this region. Undermining it not only affects traders but the livelihoods of thousands who depend on the port’s efficiency,” she noted.