• The county has proposed a levy at a rate of $5 per imported motor vehicle, $10 per container per TEU, and $0.5 per metric tonne of all loose cargo.
• Nassir said the push to benefit from the port’s revenue is to ensure Mombasa remains self-reliant.
Image: JOHN CHESOLI
Mombasa Governor Abdulswamad Nassir is still adamant the county should benefit from a percentage of billions of shillings collected as revenue at the Port of Mombasa.
In January, Attorney General Justin Muturi slammed brakes on Nassir's push to have Mombasa collect revenue from the port, saying it was unconstitutional.
In the Mombasa County Finance Bill 2022-23, Nassir’s administration has proposed that the Port Users Infrastructure and Support Maintenance Levy be charged on all local imports.
The county has proposed a levy at a rate of $5 per imported motor vehicle, $10 per container per TEU, and $0.5 per metric tonne of all loose cargo.
However, in an advisory dated January 19, the Attorney General said Mombasa county does not have the powers to impose a levy on any goods imported into the country.
“This function is the exclusive responsibility of the national government as provided under Article 209(1) (c) of the Constitution,” the Attorney General said.
The AG advised that going forward any county that seeks to impose a tax or implement other revenue-raising measures should do so by seeking concurrence of the National Treasury Cabinet Secretary and the Commission on Revenue Allocation.
On Friday, during the groundbreaking ceremony of Sh16 billion Taifa Gas handling facility at the Dongo Kundu Special Economic Zone, Nassir said he will not stop pushing for Mombasa to benefit from the billions collected from the port.
President William Ruto was the chief guest during the Dongo Kundu event in which Tanzanian businessman Rostam Aziz was given 30 acres to set up a 30,000 metric tonnes gas handling facility.
“First, I want to thank you [President Ruto] for reverting port services back to Mombasa. It is something that I personally fought for since I was an MP,” Nassir said.
“However, we have a question on the revenue collected at the Port of Mombasa. This region deserves to get a certain percentage and if I do not talk about this issue, I would have not done justice to my people.”
Nassir said the push to benefit from the port’s revenue is to ensure Mombasa remains self-reliant.
“As a county we have to be self-reliant, we should not be knocking on doors of companies, institutions and parastatals asking for donations,” he said.
The county chief said he has had several meetings with President Ruto, Transport CS Kipchumba Murkomen, the Attorney General and a team of Ruto’s economic advisers on the issue of revenue from the port.
“I want to thank you [President] for agreeing that indeed Mombasa deserves a certain percentage of money collected from the port. We have already spoken to the Ministry of Transport and the AG, and have all agreed that the most important thing is that the people of Mombasa should benefit from the port,” Nassir said.
However, President Ruto gave the debate on revenue generated from the Port of Mombasa a wide berth, but promised to work with all elected leaders in the country.
The Mombasa government had written two letters - on January 9 and January 16 - to the Attorney General seeking legal guidance on the imposition of the Mombasa County Port Users Infrastructure Support and Maintenance Levy.
On January 16, the Ministry of Transport wrote to the AG on the same matter, saying it had noted that some proposals in the County Bill would have a negative impact on transport and the economy.
The Transport ministry said the bill was likely to cause disruptions in international port services and international trade at the various points of entry, notably at the Port of Mombasa, Moi International Airport and Mombasa Rail Terminal, which provides cross-border services.
“The proposal will affect the competitiveness of Mombasa port as the strategic gateway to the east and central Africa region,” the Transport ministry said.
According to the Attorney General, Article 209 (1) vests in the national government exclusive powers to impose certain taxes including income tax, value-added tax, customs duties and other duties on import and export duties and excise tax.
The AG said they have noted that the Port Users Infrastructure Support and Maintenance Levy targets imported motor vehicles, containers and loose cargo with the exclusion of all transit and export cargo.
The levy to be imposed is general and does not provide for a specific category of motor vehicle, container or loose cargo.
“However, accordingly, matters related to international and national shipping are not within the powers and functions of the county government,” Muturi said.
“While it is appreciated that the county government carried out extensive public participation in the proposal. It is our considered opinion that the county government should strictly adhere to the provisions of the Constitution and the Customs and Excise Act.”
Nassir on Friday said they respect the advisories from the Attorney General and the Ministry of Transport, however, he still believes an amicable solution will be arrived at.
“However, even as we respect the advisory opinions, we must all respect the opinion of the people of Mombasa. Therefore, if this is not the direction we should take, then, how should we move on to the next step?” Nassir posed.
He said the next generation will praise President Ruto and himself if they are able to resolve the impasse and allow Mombasa to benefit from Port’s revenue.
“This conversation has already been passed before the AG, Ministry of Transport, economic advisors, and I want to believe that in the next couple of days, we will be able to finish this discussion so that Mombasa port benefits us all,” he said.