logo

MWANGURA: A national shipping line is a strategic necessity

" Kenya loses an estimated Sh600 billion annually due to inadequate investment in the Blue Economy sector."

image
by PURITY WANGUI

News07 October 2024 - 13:36

In Summary




    EXPERT COMMENT by ANDREW MWANGURA

    Geoffrey Kaituku, the Principal Secretary of Shipping and Maritime Affairs, recently disclosed that Kenya loses an estimated Sh600 billion annually due to inadequate investment in the Blue Economy sector.

    This is due to the country’s lack of investment in its shipping infrastructure and heavy reliance on foreign shipping lines. The consequences are evident: missed job opportunities, lost revenue, and reduced control over one of the most critical sectors of the economy. 

    The revival of the Kenya National Shipping Line (KNSL) and the establishment of a national merchant fleet are desirable and essential for regaining economic strength, improving trade efficiency, and unlocking Kenya’s Blue Economy potential.

    Established in 1987 to facilitate maritime transport, KNSL has faced considerable challenges over the last 37 years, leading to its decline. Mismanagement, mounting debts, and a lack of investment have hampered KNSL’s ability to operate effectively, resulting in the country’s dependence on foreign shipping lines to transport its imports and exports. 

    The cost of depending on foreign operators has had profound implications for the Kenyan economy, affecting the overall cost of trade and the country’s sovereignty over maritime activities.

    Kenya can no longer afford to be an onlooker as foreign operators profit from its trade routes, extracting vast sums that could otherwise benefit local communities and national development. Reviving KNSL is a strategic necessity.

    A national merchant fleet would reduce dependence on foreign shipping lines, lowering the costs of imports and exports. With its vessels, Kenya could facilitate trade more efficiently and strengthen its ability to manage logistics and respond to global market demands.

    This is particularly important for our country, where maritime trade forms the backbone of the economy, connecting local industries with international markets.

    Moreover, the revival of KNSL would serve as a significant driver of job creation. Kenya’s maritime sector still needs to catch up regarding human resource capacity.

    Establishing a national merchant fleet offers opportunities for a wide range of employment, from seafaring roles and ship maintenance to administrative and logistical positions.

    In addition, the growth of the maritime sector would necessitate investment in local education and training.

    Institutions such as the Technical University of Mombasa, JKUAT, and Bandari Maritime Academy could leverage this to provide young Kenyans with the skills required to drive the industry forward, transforming Kenya into a regional hub for maritime expertise.

    logo© The Star 2024. All rights reserved