The Kenyan government’s plan to take over cargo clearance by handling documentation and port processing without private agents has sparked alarm, with over 200,000 jobs at risk, according to the Kenya International Freight and Warehousing Association (KIFWA).
The initiative, aimed at streamlining operations at the Port of Mombasa, threatens to sideline KIFWA’s 2,000 member firms, which employ thousands in clearing, forwarding, and warehousing.
KIFWA warns that the move could devastate businesses and exacerbate unemployment, contradicting President William Ruto’s job creation agenda.
Announced as part of efforts to enhance efficiency, the government’s strategy involves the Kenya Ports Authority (KPA) and Kenya Revenue Authority (KRA) directly managing cargo clearance, bypassing private agents.
Netizens highlight the scale of the threat, estimating over 200,000 job losses and criticising the policy as undermining Ruto’s “bottom-up economics”.
KIFWA Chairman Fredrick Oloo told The Star that the plan risks “killing small businesses” and could lead to a strike, recalling past protests in 2024 when KPA’s end-to-end logistics plan triggered similar concerns.
The Port of Mombasa, handling over 30 million tonnes of cargo annually, is a critical economic hub, with KIFWA agents facilitating 80% of customs processes.
The association argues that excluding private firms will increase costs for importers due to delays and inefficiencies, as seen in 2018 when KPA’s withdrawal of preferred Container Freight Stations led to cargo pile-ups and Sh3 billion in losses.
KIFWA also fears foreign shipping lines, which control 92% of Kenya’s trade, could dominate the process, further marginalising local firms.
KIFWA has urged dialogue, citing the 2020 Kenya Customs Agents and Freight Forwarders Bill, which aimed to professionalise the sector and reduce delays.
Critics, including Mombasa-based agent Leonard Njiru, argue that KPA should focus on port management rather than competing with private businesses.
The government defends the plan, claiming it will boost KRA revenue, which hit Sh791 billion in 2024 through agent collaboration.
As tensions rise, stakeholders await KPA’s response, with fears of port disruptions looming if no compromise is reached.
