Have port operations been moved from Mombasa to Nairobi and Naivasha?

Deputy President William Ruto has claimed that the putting up of the Naivasha dry port was never meant to, “shift port operations” and that if elected he will reverse the decision.

But Raila Odinga has been on Ruto’s case accusing him of political deceit and doublespeak.

Now, Politicians will do the politics, they will accuse each other of what was or was not said or done. But, let’s spend a moment to have a look at the facts that are available and verifiable.

On 30th May 2017 President Uhuru Kenyatta in the company of Deputy President William Ruto in Mombasa flagged off the first Cargo train to ride on the new Standard gauge Railway, destination Nairobi. At this time there had been talks of putting up a dry port in Naivasha.

In December 2019, President Kenyatta flagged off a cargo train from Nairobi to Naivasha marking the start of operations at the Naivasha inland container depot.

In March 2019, the Kenya Ports Authority had issued a directive that all cargo destined for Nairobi would have to be ferried on the SGR.

There were protests in Mombasa by shippers and transporters fearing loss of livelihoods. In November 2020 the High Court suspended the directive requiring that public participation be conducted.

What is the truth about the claim that port operations were moved from Mombasa to Nairobi and Naivasha?

All basic port operations still continue at the Mombasa port, this includes berthing of ships and of course offloading. It can only happen at where the sea meets the land.

Clearance of loose cargo, and motor vehicle units remain in Mombasa. The clearance of containerized cargo that is destined for Mombasa and the coast also remains there.

What operations are at the Nairobi inland container depot?

An estimated 40 percent of the Mombasa port volume is moved via the SGR. Much of it lands at the Nairobi ICD in Embakasi.  Clearance happens here, meaning once a vessel docks at Mombasa, the containers destined for Nairobi are transhipped to the Cargo wagons on the SGR and moved straight to Nairobi for further processing by KPA officials and select Container freight stations or CFS. This is what DP William Ruto says should return to Mombasa.

Upon clearance, truckers pick up the containers for onward transportation to the rest of the country.

This is the clearance point for cargo destined for neighbouring countries like Uganda, Rwanda and South Sudan with intention to expand to other countries within the East African community.

Reports indicate there are no CFS firms and it is only KPA officials that are involved in Naivasha.

The Naivasha dry port is an expansive space of about 1,000 acres. It has the capacity to process 2 million tonnes of cargo every year and it was meant to be a catalyst for the Naivasha special economic zone, an industrial hub dreamt about by the current administration.

What has been the impact of the shifts in cargo processing from Mombasa to Nairobi and Naivasha?

Coast politicians say that the Container freight stations economies were affected. Initially CFSs would handle up to 85 percent of the cargo docking at Mombasa, it is now down to about 20 per cent.

Some CFSs had to relocate some of their operations to remain in business. Truckers and transporters had their livelihoods affected especially with the reduced distance to cover if they have to shift to pick up cargo from Nairobi.

But the movement has been good news for port managers and some users. It was meant to decongest the Mombasa port and improve its efficiency, which it has. Now cargo can be cleared within 48 hours or at most 4 days. It was also meant to enhance revenue collection and rid tax evasion.

With the expanded cargo capacity from recent improvements, the Mombasa port handled 34.5 million tonnes of cargo in 2021 up from 27.3 million tonnes in 2016. The SGR cargo services earned 13 billion shillings in the year 2021. This is according to the Economic Survey released by the KNBS.

In terms of revenue, the Kenya revenue authority collected a high of 728 billion shillings from customs and border control services in the financial year that ended 30th June this year. This is up from 510 billion shillings in the 2019/2022 financial year. In 2017/2018 financial year the earnings from customs were 470 billion shillings.

And so, as the politicians compete for the attention of coastal voters, what would be the impact of reverting the said port operations to Mombasa?

There is a risk of port congestion and thus inefficiencies, revenues could decline, there might be increased traffic on the Mombasa-Nairobi highway should importers choose to take their cargo back to the road. Jobs could be lost especially at the Nairobi and Naivasha ICDs once operations are taken away.

But it could mean more business opportunities for the truckers and CFSs based in Mombasa. And so, is it a political question or an economic question? Be the judge.