Govt Blocks Private Investors From Deals in Radical Changes at Mombasa Port

President William Ruto signs visitors book during his visit to the Port of Mombasa on November 18, 2022.

The Kenyan Government through the Ministry of Mining, Blue Economy and Maritime on Friday, April 14, dealt a blow to private clearing companies operating at Mombasa Port.

This was after Maritime Cabinet Secretary Salim Mvurya introduced, via a directive to government agencies, a new format on how government goods should be cleared at the port.

In the new directive, Kenya National Shipping Line (KNSL) was tasked with handling all imports and exports associated with government entities.

KNSL, a government agency, was expected to use the Government Clearing Agency (GCA) for clearance purposes.

A ship unloading at the Port of Mombasa on November 21, 2022

In the past, private clearing and forwarding agencies were contracted to process government cargo at the port.

With the new directive, the agencies are set to lose billions in revenue they earned from handling government cargo.

Mvurya explained that the change was a necessary way to ensure the troubled KNSL and GCA reclaimed their profitability status.

The CS had earlier on Friday, March 31, announced the state's intention to move clearing operations to KNSL.

"Ministries, Departments and Government Agencies will soon be required to clear their goods through GCA, as part of revitalising the KNSL” Mvurya announced at the time.

The directive was one of the key major changes President William Ruto-led government made at the Mombasa Port.

On September 13, 2022, the President reverted port operations to Mombasa from Nairobi and Naivasha Inland Container Depots (ICDs).

At the time, the President revealed that this was a move to restore thousands of jobs back to the coastal town.

On November 18, 2022, Ruto further promised to ensure that the port undergoes a multibillion upgrade.

"The upgrading of the Port of Mombasa will boost its container capacity and operational efficiencies, regaining its repute as East Africa’s gateway to trade,” the President stated.

Transport CS Kipchumba Murkomen (left) and his Maritime Affairs counterpart Salim Mvurya during a ports stakeholders meeting held in Mombasa County on Friday, April 14, 2023.