Government agencies delaying port operations should give rebates of one per cent of the value of cargo to business owners, a report has said.
The report on Improvement of Efficiency and Cost Effectiveness of Transportation of Cargo Using SGR shows customs release to cargo collection could take up to 33 days as opposed to the recommended six hours due to delayed processes.
Customs processing and release could also take 23 days as opposed to the recommended six hours. Some of the agencies under the spotlight for slow operations at the port have been cited as KRA, KPA as well as clearing agents.
Issues raised by the committee include undefined lengthy multi-agency processes extending to more than 14 days which is outside clearance timelines. Others are delays at the document processing centre due to multiple interventions by different agencies, quality of declarations by clearing agents, valuation and other KRA stops.
The lack of digitised processes has also been blamed for stalling port clearance for agencies operating at the port including Kenya Bureau of Standards, Anti-Counterfeit Agency, National Police Services and Port Health.
According to Shippers Council of Eastern Africa, importers have reported losses in hundreds of millions of shillings in demurrage charges as a result of delays to transport empty containers back to Mombasa in the last year. They also recommended non-compliant Certificate of Conformity service providers be penalised by providing professional liability insurance at one per cent of the cargo value.