Mombasa port projects an increase in transshipment cargo after Kenya lifted the seven-year ban of stripping of cargo in containers at the port before onward delivery by dhows and barges to Zanzibar and Pemba.
The Kenya Revenue Authority (KRA) announced reintroduction of stripping, which is destuffing containerised cargo, after putting in place measures to curb smuggling, where before cargo is diverted in the ocean and finds its way into the East African Community (EAC) market.
The move is expected to cut the cost of container charges, considering that the boxes will be returned to the shipping line on time, since they will not be leaving the port as before.
Millers Association’s representative at the Mombasa port Naseeb Mbarak said the reintroduction of stripping would reduce the cost of transporting cargo to Zanzibar and Pemba by returning containers on time.“Smaller traders will also benefit out of this as they can now import in groups,” he said. Mombasa-based clearing and forwarding agent Roy Mwanthi said the two destinations are the main transshipment destinations for Mombasa and the move will increase cargo numbers.“Last year, Mombasa registered exceptional growth in transshipment traffic, which recorded 491,666 twenty-feet equivalent units (Teus), reflecting an extraordinary increase of 280,593 Teus and translating into 132.9 percent growth against 2023. With these numbers, stripping will surpass 500,000 units which will mean more Mombasa port revenues,” Mr Mwanthi said.
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In 2018, the KRA in a public notice banned the stripping of containers destined for Zanzibar and Pemba. Before the ban, cargo destined for Zanzibar was being redirected to ports closer to the destination, such as Dar es Salaam, Tanga, or Zanzibar itself under a different manifest.
In November 2022, the Tanzania Revenue Authority (TRA) wrote to KRA requesting a review of the ban on stripping to facilitate their importers in Zanzibar and Pemba.“KRA reviewed the same and granted indulgence on the stripping of cargo to Zanzibar and Pemba under conditions. In this regard, the earlier public notice issued is hereby set aside in line with this communication,” said the notice by KRA.
