Africa-Press – South-Sudan. A Kenyan clearance agent has said South Sudanese traders could lose millions as thousands of containers remain stuck at the Port of Mombasa following the introduction of new tax rules and strict storage limits.
Hamid Abdellatif, who clears goods for South Sudanese importers, says the changes have disrupted trade and increased the cost of essential goods entering South Sudan.
He told Eye Radio from Mombasa that many traders cannot afford to pay taxes upfront in Kenya, forcing them to abandon their cargo.
“Now, what I can say, we have been handling work for South Sudan containers, units, fuel without any problem. They used to move swiftly from the port to South Sudan, but last year, October, the introduction of payment of taxes, when the goods are in Mombasa… most of the traders and importers, they failed to get money for paying the taxes, so the goods have been abandoned until now… there are more than even 3,000, 4,000 containers which are stuck in Mombasa,” said Abdellatif.
Abdellatif says South Sudanese traders face tougher conditions than neighbouring countries, with private Container Freight Stations allowing only 14 days before high fees begin.
“Now, other countries like Uganda, Rwanda, Congo, their containers are being cleared from the port… They are given free 60 days to 90 days… But now, containers for South Sudan… will be handled by two companies… They give only 14 days,” he added.
Vehicle suppliers say the penalties and extra charges are draining their businesses.
“Well, actually, we have been battling with this for so long… right now, we are paying very high damages… like, $20 per day, per unit… Really, it has been a war,” he stated.
Abdellatif says the situation will only worsen unless both governments intervene.
“We need three things: nomination of containers back to clients, taxation done in Nimule, and a waiver for all stuck cargo… Without this, goods will remain stranded, costs will rise, and the market suffers,” he said.
Traders warn that without reforms to taxation and storage rules, the backlog in Mombasa will continue, making essential goods even more expensive for South Sudanese consumers.
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