Transporters warn demos will hurt regional trade

Trucks queue at the Mariakani weighbridge

Trucks queue at the Mariakani weighbridge in September 2022. Transporters say they foresee heavy losses if the protests continue. 

Photo credit: File | Nation Media Group

Transporters are anxious that more violence could disrupt business for Kenya and the neighbouring countries of Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo that rely on Mombasa Port.

They warned they are likely to incur massive losses if cargo is delayed or stolen along parts of the Northern Corridor if the protests continue to happen. At the height of the 2007-08 post-election violence, importers suffered massive losses with parts of the Northern Corridor cut off.

Although activity at the port has been steady, the importers are apprehensive that demonstrations could affect the flow of goods.

Kenya Transport Association chairman Newtown Wang’oo said their members will be parking their trucks on Monday and Thursday every week to save them from attacks, which will affect of cargo from and to the Mombasa port.

Mr Wang’oo said the suspension of haulage of cargo by more than 5,000 truck drivers will not only choke Mombasa port and other Kenya Ports Authority facilities, but transporters estimate they will lose about Sh100 million a day.

He revealed that when the demos happened last Monday, no incident of cargo vandalism was reported since they had advised their members to park their trucks.

“We had resolved to suspend our services every Monday to give room for demonstrations as we remain safe but with an additional day (Thursday) for protests, we have no option but to park our trucks two days a week,” he said. 

A KPA ship manifest shows 37 vessels are scheduled to make a call at the port in the next 14 days. Seventeen of them are container vessels, 12 conventional, four car carriers and four oil tankers.

Mr Wang’oo said protests, especially in Nairobi and Kisumu, will affect the movement of imported goods along the Northern Corridor. According to Mr Wang’oo, they will affect exports as well as the return of empty containers and goods meant for export from Uganda, South Sudan and DRC.

“With the current situation, we are now concerned about our future business as already, we have received inquiries from our clients if it’s no longer safe to use the Northern Corridor, which indicates they are considering using the Central Corridor in the near future,” he said. The Central Corridor begins at the port of Dar es Salaam and serves Tanzania, Zambia, Rwanda, Burundi, Uganda and Eastern DRC. 

Port congestion

Users have also warned that if the demonstrations persist, Mombasa port is likely to experience congestion as very few trucks will be operating effectively while other traders opt to use the Port of Dar es Salaam.

Kenya International Freight & Warehousing Association Chairman Roy Mwanthi said: “The situation is not conducive to traders and the effects will be long-term. That is why we are asking the government to ensure goods and properties are protected.”

At the same time, hospitality stakeholders have urged the opposition leaders to stop the demonstrations saying it will affect the sector ahead of the April peak season.

Kenya Association of Hotel Keepers and Caterers Coast Executive Officer Sam Ikwaye and Kenya Coast Tourism Association chairman Victor Shitakha called for a cease-fire.

“These tourist investments and infrastructure are set up to boost the economy and create jobs. We must refrain from chaos and destruction of properties. Politicians should stop the planned demonstrations and instead seek alternative dispute-resolution mechanisms. We want dialogue,” said Dr Ikwaye.

Mohammed Hersi, a hotelier said: “Kenya was on the right track recovering from effects of Covid-19 but with current political instability, we are seeing the situation reverting back since reports by international media are damaging.”