Complaint

Complaint number
NTB-001-078  
NTB Type
1.2. Government monopoly in export/import  
Complaint
The government of South Sudan through the Ministry of Transport on 25 Feb 2022 had request the government of Kenya through the Ministry of Transport to facilitate the clearing of all South Sudan cargo at Nairobi Dry Port by moving all containerize cargo by rail and to be cleared at a Private Container Freight Stations (CFS) Autoport Freight Terminals Ltd. When the directive was implemented on 13 June 2022, Stakeholders and the private sector in particulars did not appreciate the move and it see as monopolistic in nature and it did increase the cost of doing business for South Sudan importers, This was brought to the attention of the Ministry of Trade and Industry South Sudan which is the line ministry, The ministry of trade communicated to ministry of transport South Sudan on the implication raise by the private on the cost of import and the monopoly fact, after the consultation between the two ministry in South Sudan, The minister of Trade and Industry wrote two communication letters to the Ministry of Trade Kenya on 23rd May 2022 and Ministry of Transport Kenya on 13 June 2022. However, all the communication had not been responded to from Kenya ministries mention, on 28 July 2022 Members of Parliament summon the ministries of Trade and Transport and resolve to Suspend relocation of South Sudan Cargo via Nairobi to protect South Sudanese and the Minister of Transport South Sudan was requested to revoke his letter to the Ministry of Transport Kenya to allow South Sudanese cargo owner to clear their goods directly from the Port of Mombasa. On 28 July 2022 the Ministry of Transport South Sudan wrote to his counterpart in Kenya requesting the suspension of his previous letter dated 25 Feb 2022. All those communications did not bear fruit on trade facilitation update. Unfortunately on 4th October 2022 the Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works. Wrote a letter to the National Treasury and Planning Kenya informing the Cabinet Secretary on not receiving any formal communication from South Sudan Government and for his guidance all South Sudanese cargo is to be rail and cleared at Nairobi.
 
Progress update note
The Republic of South Sudan informed the meeting that, on 25th February 2022, the Republic of South Sudan requested the Republic of Kenya to clear cargo at Nairobi but then realized that the costs were higher in Nairobi than Mombasa by USD 500 - USD 780; the containers are supposed to be dropped back to Mombasa after clearance and drive back an empty truck to pick the cargo. It increases the cost of doing business.
It also causes delay as the RSS felt that SGR doesn’t give priority to RSS cargo. Hence, on 23rd of May, and 28th of July 2022 respectively the RSS requested the Republic of Kenya to revert to the original clearance plan of clearing in Mombasa. Kenya has since not responded to the letters from RSS. The Republic of South Sudan submitted evidence of the letters to the Republic of Kenya.
The Republic of Kenya informed the meeting that the letters had not been received and hence could not take any action.
The Republic of Kenya received the copies of the letters as evidence during the RMC meeting.
The meeting agreed that the Republic of Kenya consults and revert clearance of RSS cargo from Nairobi to Mombasa.  
Policy or regulatory NTB
Yes 
Location
Kenya: Mombasa sea port (Seaport)  
Reporting Country or Region
 
Country specific trade issue
No  
Date of incident
2022-06-13  
Status
New  
Product Description


 
Total value
0  
Date reported
2022-10-18 15:16  
Modified
2022-10-18 15:16