Uncategorized

South Sudan imports affected as Kenyan clearing agents halt services over fees

Containers at the Mombasa Port, Kenya. (NMG photo)

Importation of goods through the Mombasa Port in Kenya to South Sudan has been severely affected after clearing and forwarding agents at the port suspended services over Juba’s new trade directives.

Several Kenyan media outlets on Monday reported that the agents halted their services following South Sudan’s introduction of a new US$3,580 charge per container. The clearing agents said the charge was imposed without consultation with key stakeholders.

Roy Mwanthi, the representative of the agents in Mombasa, said that the Government of South Sudan issued the directive without following international and diplomatic procedures, and without engaging stakeholders directly involved in cargo transportation.

“We were shocked to get the communication from South Sudan Revenue Authority (SSRA) Commissioner General Willian Kuol, even without consulting us,” he stated.

The SSRA in the same notice also abolished the container deposit fee of $5,000 for cargo destined for South Sudan from the Mombasa Port. The move is considered a disadvantage to traders, as the charge acted as a warranty to assure transporters that the containers would be returned.

The SSRA also directed that no South Sudan-bound cargo would be released from Kenya without a valid Maritime Container Release One Time-Password (OTP), generated through the government’s official portal: Https://transport.eservices.gov.ss.

SSRA argues that the directive is aimed at improving accountability, traceability, and efficiency in the importation chain, as opposed to impeding trade.

A landlocked country, South Sudan relies heavily on Kenya for its external trade. Any disruption to the trade flow could have far-reaching consequences on the nation whose northern neighbor, Sudan, has been at war since April 2023.