In the implementation of the reforms proposed last year by a high-level committee, the Kenya Ports Authority (KPA) has ordered the removal of long-overstayed empty containers and privately owned equipment to free the port’s yard.
This follows an equipment survey exercise conducted in the port of Mombasa that observed privately owned equipment that lay idle, stalled vehicles, tools, long-stay empty containers at the yard, and sick bays that were choking the facility.
“Owners are hereby notified and required to plan for their evacuation from the port premises within 14 days from the date of this notice, that is, by the close of business on May 7, 2024,” a public notice issued on April 23rd by KPA partly reads.
However, owners are required to pay the necessary fee before evacuation. The notice states: “In the event of your failure to comply with this notice, the port’s authority will dispose of the equipment, long-stay containers, and any of the aforementioned items under the KPA Act to defray any charges due to their respect, without any reference to the owners.”
The Intergovernmental Steering Committee on Ease of Doing Business through the Port Reforms Working Group High-Level Consultative Forum made a raft of recommendations that have continued to cut down the cost of doing business at the Port of Mombasa and improve efficiency significantly.
The other key recommendation by the committee was the need to fast-track the passage of the Customs Agents and Freight Forwarders’ Bill to conform to global best practices.
“The customs regulation bill will lead to enhanced predictability in revenue collection from customs agents, improving compliance levels and professionalism,” the report said.
The Federation of East African Freight Forwarders Associations (FEAFFA), the regional apex private sector body of Clearing and Forwarding Agents (CFA) in East Africa, has been instrumental in advocating for the implementation of national legislation aimed at self-regulating the logistics sector across the EAC partner states.
FEAFFA has already supported the development of national bills on the professionalization of the customs clearing and freight forwarding industries among the EAC partner states. The bills are intended to form the legal basis for regulating the logistics sector.
They cover key aspects considered critical by industry stakeholders in ensuring a genuinely professional customs agent and freight forwarder sector, like other professions. Key among them are the establishment of a regulatory board, technical qualification and continuous professional development, certification and registration, the obligations and conduct of registered customs agents and freight forwarders, the professional code of conduct, offenses, and penalties, disciplinary proceedings, appeals, and mutual recognition agreements, among others.
All countries, apart from DR Congo and South Sudan, have drafted bills ready to be presented to their respective parliaments for consideration.
The East African Customs and Management Act of 2004 (EACCMA 2004), the only recognized customs law in the region, has massive limitations and falls short in several aspects of the highly dynamic freight logistics sector. Some of the pertinent issues affecting industry players, such as their professional development, have not been addressed under EACCMA. Yet this is a catalyst for enhancing levels of compliance in the sector.
Through self-regulation, there will be enhanced professionalism in the delivery of freight forwarding services, increased compliance with existing regulations, and a guarantee of high-quality services. They will lead to increased revenue collection. The bill will also supplement government regulations by filling regulatory gaps, such as through improved governance and the promotion of professional ethics. Cargo owners, freight forwarding service providers, and consumers in the supply chain will be guaranteed protection from liability and unprofessional customs agents. The bill will also ensure fair competition among industry practitioners. Above all, the enactment of industry self-regulation laws will improve the image of the industry and accord this critical sector its space among fellow professional societies in the region and across the globe.
The article was published by the editorial team at the FEAFFA Secretariat. For any inquiries, please contact us via email at editorial@feaffa.com or freightlogistics@feaffa.com, or reach out to Andrew Onionga directly at onionga@feaffa.com / +254733780240.
