A series of bilateral talks have been held between Kenya and Uganda over allegations of harassment of traders at the port of Mombasa amid growing fears of a total breakdown in trade ties, writes ALI TWAHA.
Trade minister Amelia Kyambadde recently met with the Kenyan deputy high commissioner to Uganda, Robert Ngesu, and fronted claims of alleged harassment of Ugandan traders at Mombasa port – the entry point for Uganda-bound imports.
Three traders, Uthuman Kimera, Robert Kisitu and Diana Nasuna, representatives of Sinosolar International Uganda Limited, petitioned the trade ministry and also filed a complaint with Interpol Uganda over harassment and extortion in Nairobi.
The trio accused Kenya Port Authority (KPA), Semelado Investment Limited/Sharis Logistics and Cargo Hauliers Investment — all registered Kenyan clearing agents of causing them financial loss of more than $40,000 (nearly Shs 140m).
Already, some traders, according to Kampala City Traders Association (Kacita), are working on plans to shift their business from Mombasa port to Tanzanian’s Tanga port over claims of excessive losses incurred in storage charges and extortion.
More than 80 per cent of Uganda’s imports come through the port of Mombasa, accounting for the highest traffic at the port. A switch to a Tanzanian port, be it Tanga or Dar es Salaam, however, comes with the headache of moving goods over a longer distance compared to Mombasa port.
Kyambadde, nevertheless, said she was worried the grievances Ugandan traders express could disrupt trade relations.
“Considering the heavy losses that the Ugandan business community has suffered, the government of Uganda requests the government of Kenya to consider, in the spirit of East African Community, to immediately secure the release of the containers being held and tabulate any related costs involved that will be settled at a date that will be agreed upon later by the two governments,” Kyambadde told the Kenyan commissioners during the meeting.
Uganda and Kenya have already had trade disputes. For example, in 2007, Kenya stopped the entry of one-day-old chicks into the country, saying it threatened the local market. The same reason was given for Uganda’s sugar entering Kenya in 2014.
In May 2015, Kimera, Kisitu and Nasuna imported 17 containers through Mombasa. On arrival, the containers were to be cleared and transported by clearing and forwarding firms in Kenya.
However, only fifteen containers got waivers and were transported to Uganda. The remaining two have since got stuck at the port accumulating different charges.
When the traders travelled to Mombasa for their goods, disagreements on the terms of payment arose. The Kenyan companies demanded upfront payments before they could deliver.
“What they only demanded for was money minus showing us the remaining two containers,” said Nasuna.
Instead, authorities at the port resorted to demanding for bribes to speed up the process of waving off the storage charges that the two containers had accumulated. However, their efforts were futile, leaving them short of more than $40,000 taken through extortion.
As a result of this ordeal, cases of other claimants have cropped up. For example, Kaaya Ltd imported ground equipments for Uganda National Roads Authority (Unra) through Mombasa in 2012. However, the port auctioned the goods on July, 2012 on claims that they overstayed at the port according to the trade and industry ministry.
Kenyan high commissioner Ngesu said all the allegations being made are subject to investigations before any actions are taken.
“We are going to look into these claims through our ministry of Foreign Affairs, and indeed if they are genuine, we are going to take action”, he said.
According to information from the ministry of trade, it is estimated that Uganda loses approximately $350,000,000 (about Shs 1.2tn) due to non-tariff barriers at the port of Mombasa, while the East African Community loses nearly $2,601,618,773 (about Shs 9.1tn) through extortion from the shipping lines.
KACITA SPEAKS OUT
According to Jjemba Mulondo, the secretary for security, mediation and environment at Kacita, cases of containers being auctioned at Mombasa have become common without prior notification to the owners. Jjemba says Ugandans have been the biggest losers since they account for the highest traffic at the port.
“Currently, uncollected containers at the port are above 1,500. Some have been there for more than one year,” Mulondo said.
“There is great fear among our people that if something like this can happen to someone who imports 100 containers, how about the small players?”