Africa-Press – South-Sudan. South Sudan negotiated a cargo clearance deal with Kenya to allow importers to have their goods cleared at a Nairobi terminal before being channeled to Juba. The agreement, which has been struck on brotherly grounds, comes with incentives that will add value to the South Sudanese traders and consumers.
In a statement released yesterday, the Secretary-General of South Sudan’s International Freight and Warehousing Association, Adau Kuol Biong, hailed the decision that it would save the clients and truck operators from hefty transport costs incurred through road transport.
She further noted that the decision would limit the delays related to fraudulent customs officers and clearing agents as only six South Sudanese Clearing agents had been licensed to operate.
The agreement stipulates that South Sudan’s imports will be handled by the Joho firm, owned by the Governor of Mombasa, Ali Hassan Joho, at their terminal in Nairobi.
But with its sweet terms that could cushion South Sudan from frequent commodity shortages triggered by logistical hitches, there is a potential, eventuality, that the country could be drawn into Kenyan politics of the management of the Mombasa Port.
The decision to establish a dry port in Naivasha has been contested by Mombasa residents who view this as an avenue that could kill their businesses. And with the grievances of the residents being pronounced, political figures running for the country’s top job have pounced on the issue to make a kill.
Campaigning ground
For instance, Kenya’s Deputy President, William Ruto termed the transfer of the port of Mombasa to Naivasha Inland Container Depot as a ‘‘violation of the agreement inked before the construction of Standard Gauge Railway (SGR),’’ The Standard reported.
Ruto who is a presidential aspirant—challenging former Prime Minister Raila Amolo Odinga in the August 9 presidential race — is currently using the Mombasa port politics, where he promises to revert the activities of the port to the coastal city as he tries to woo votes from the coast.
He claimed that the coast would face a dwindling economy as a few individuals are destined to benefit from the port. Ruto says, he intends to make the changes six months after he clinches the presidency.
“I have signed an agreement to return the port operations to Mombasa. This will bring jobs back to Mombasa. The operations were transferred from Mombasa to benefit a few individuals.
Ruto was among the people who supported the transfer of the port in their 2018 campaign with President Uhuru Kenyatta.
Aborted deal
Freight services started in December 2017, after President Uhuru Kenyatta commissioned the upgraded Inland Container Depot (ICD) in Embakasi.
Business Daily
reported in 2018 that evacuation of the port would be a great loss of billions of shillings.
The decision was openly opposed by transporters from Kenya and Uganda, as Uganda reportedly holds nearly a quarter of business at the port.
Uganda holds 83.2 per cent, the Democratic Republic of Congo holds 7.2 per cent, Tanzania holds 3.2 per cent and Rwanda 2.4 per cent according to Business Daily.
The governor of Mombasa, Hassan Ali Joho, threatened to sue the Kenyan government for transferring port services to Naivasha, claiming it was a slap in the face of tourism.
“When I told you that the port services were being shifted, you made a mockery of it and laughed at me. But you will not stop me from saying you are now implementing it, I am even contemplating going to court,” Joho earlier warned Mombasa residents.
With just one month to Kenya’s August poll, which will inevitably usher in a regime change; South Sudan’s victory in cargo clearance could be left for time to judge its durability.
While Ruto has taken a stand over the port, a contrary one since he fell out with President Uhuru Kenyatta, Odinga, his rival, is yet to make public his preferred way of handling the matter.
Any of the front-runners, if declared the winner of the next election, would likely change the dynamics of the business.
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