Clearing agents are up in arms against a proposal by the Kenya Maritime Authority to license players, terming it duplication as they are already licensed by KRA's customs department.
In a fresh move by the regulator to tighten its grip on the sector and raise more revenue, KMA is seeking to license clearing agents with an initial fee of $200 (Sh 29,160), a renewal fee of $100 (Sh14, 580) and application processing fee of $5(Sh 729).
Clearing agents already pay a license fee of $400 (Sh58,320 at the current exchange rate), and up to Sh100,000 to counties where they operate in depending on the size of the company, Kenya International Freight and Warehousing Association (KIFWA) said.
In the proposed Merchant Shipping (Maritime Transport Operators) Regulations 2021, regulation 9 (1) on operators licensed by related government agency, KMA is seeking to register all MTOs.
KMA is targeting shipping lines with initial registration fees of up to $3,000 (Sh 437,400 ) with renewable and other fees targeting shipping agents, cargo consolidators, empty container depots, freight stations, port facility operators and clearing agents.
According to KIFWA, customs agents will be subjected to double licensing by KRA and KMA, in addition to other charges such as customs bond and single business permit.
“We oppose the move vehemently,” national chairman Roy Mwanthi told the Star yesterday.
In a letter to the Parliamentary Transport Committee chairperson George Kariuki, dated August 29, Mwanthi noted that the maritime regulator’s demand to license customs agents is not only unfair, but “additional of administrative bureaucracy layer and costs to business.”
KIFWA further objects to KMA's plan to list all players as maritime operators, despite some businesses being strictly on-air freight at airports.
The association has about 1,200 members of which, about 700 handle air and land freight cargo clearance with the remaining are in maritime cargo clearance.
The move will make the country uncompetitive, Kifwa said, losing to agents from neighbouring countries mainly handling transit business in Kenya.
The move by KMA is however seen to be an initiative to raise more funds for the authority, which currently receives $40 (Sh5,832) for every container that lands at the Port of Mombasa, and at last $30 (Sh4,374) per tonne of lose cargo.
This is the Merchant Shipping Superintendent (MSS) levy from shippers collected through agents, in addition to other revenue sources including supervisory and licensing on vessels.
The present arrangement of cargo clearance under the Single Customs Territory will disadvantage Kenyan agents, the lobby said, where their peers enjoy lower charges with no duplication.
Meanwhile players in the shipping sector are concerned that more than 1,000 Kenyan based clearing and forwarding firms could close in the wake of a takeover by international shipping lines.
Extra licensing fees will be an additional pain to local clearing agents, who are already fighting to remain in business in the wake of increased penetration of the industry by global shipping lines.
Majority of the multinationals have incorporated clearing and forwarding services within their freight packages.
According to the Shippers Council of Eastern Africa (SCEA), the vertical integration model has seen shipping lines handle freight, local warehousing, clearing and forwarding and last mile cargo delivery.
“Some players might find themselves playing third fiddle, they will have nothing to do,” SCEA chief executive Gilbert Langat said.
He said that while clearing agents are raising genuine fears and concerns, the move by shipping lines will improve efficiency.