Mombasa is slowly losing its status as a business hub, according to businessman and activist Peterside Otieno. On Friday, Otieno, who has interests in the logistics industry, expressed concerns that traders from the Democratic Republic of Congo (DRC) are being enticed to use the port of Dar es Salaam instead of Mombasa, despite Mombasa port’s superior efficiency and modern facilities.
Otieno highlighted that this shift is adversely affecting Mombasa’s economy and its role as a key trading hub in the region. He emphasized the need for strategies to retain and attract traders to the Mombasa port to ensure it remains competitive against rival ports like Dar es Salaam.
Efforts to counter this trend may involve improving trade policies, reducing logistical costs, and enhancing the overall user experience for traders and businesses relying on the Mombasa port. Otieno’s comments underscore a growing concern among local entrepreneurs about the future of Mombasa’s economic vitality and its position in regional trade networks.
“I have concerns that the national government is aware of but they have ignored the fate of Mombasa because. Mombasa is being killed both by the national government and local leaders around who have ignored it,” Otieno said at a press conference at the Habo Plaza.
“A single unit (of cargo) at the Port of Mombasa is being cleared at a cost of $600 (approximately Sh78,379). A similar unit at the port of Dar es Salaam or Tanga is being cleared at a figure of around $250 (approximately Sh32,658).”
He said Congolese businessmen have fled from Mombasa and now clear their cargo at the port of Dar es Salaam.
“And this started in around 2022. Importers from DRC cannot be conditioned to import through the Mombasa port. Those we can condition are Ugandan and South Sudanese importers,” he said.
He said Ugandan importers now exploit the Kagera border between Uganda and Tanzania, and they are starting to bring their cargo also through Dar es Salaam despite the Mombasa port being bigger, more efficient and more technologically advanced.
“The port of Mombasa is going to remain a shell,” Otieno said.
This is happening at the expense of the local residents of Mombasa because drivers, food vendors, truck owners and other small businessmen in the supply chains subsequently lose their jobs.
“And the government is just quiet over this. Nobody is talking about it.”
In May last year, Tanzania offered an exclusive transit clearance for DRC-bound cargo, signalling increased competition with Kenya for the lucrative market.
At the Kwala dry port, a 10-hectare area has been designated specifically for handling cargo from the Democratic Republic of Congo (DRC) passing through the Dar es Salaam port. The Tanzania Port Authority reports that Dar es Salaam port handled approximately three million tonnes of DRC transit cargo.
Despite this, William Ruto, the managing director of the Kenya Ports Authority, asserts that the Mombasa port remains superior in terms of efficiency. He highlighted that Mombasa port’s operational efficiency means there are no ships waiting for discharge, a significant advantage over the Port of Dar es Salaam. In late 2023, Dar es Salaam had to suspend the bagging of loose cargo inside the port to manage the congestion and reduce the number of waiting ships.
Ruto expressed confidence that the Mombasa port would continue to outperform Dar es Salaam. In March, while receiving the Ignazio Messina line, MV Jolly Gaida, he emphasized that the Mombasa port’s efficiency was attracting more business, including from the DRC. Ruto’s comments underline the competitive edge Mombasa port holds due to its streamlined operations and capacity to handle cargo efficiently, which is crucial for maintaining its position as a key trade hub in the region.
“Of the containers discharged from the ship, more than 35 per cent belong to other ports, mainly Dar es Salaam. The port of Mombasa is acting as a transshipment hub for the Messina line and all their cargo heading to Dar es Salaam will be trans-shipped from this port. This is building us an excellent business and we thank them for building confidence in us as a port,” he said.
On Friday, Otieno said the Mombasa port’s berth 23 construction is set to be commissioned.
He said it was strange that the government planned to expand the port while at the same to scaring investors away through exorbitant charges.
He said the plan to extend the standard gauge railway line from Naivasha to Malaba would ruin business for Mombasa even further because all cargo from the port will be transported through the SGR.
This, in turn, will kill container freight stations in Mombasa.
“All CFSs will be relocated to Malaba because there will be little or no business in Mombasa anymore,” Otieno said.
He said when that happens the only hope for Mombasa will be the importation of vehicles destined for Uganda and Rwanda.
“The leaders know this but nobody is questioning anything. We are questioning the government. Are they really for the interests of the residents of Mombasa or they just want the port city of Mombasa to remain a shell?” he said.
He said the government must rethink the expansion of the port, the extension of the SGR to Malaba and the high cost of clearing cargo at the Mombasa port.
