Court blocks new port tariffs; terms move draconian
Business
By
Kamau Muthoni
| Nov 16, 2023
The High Court on Wednesday blocked the government from demanding new port tariffs.
Justice Ann Ong'inja issued the orders in a case filed by the Kenya Ships Agents Association (KSAA).
The lobby's lawyer John Mbaluto told the court that the Kenya Maritime Authority (KMA) raised the charges at the port without public participation.
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Mbaluto said that his clients came to know about the new charges from a notice that was being circulated on social media.
According to the lawyer, the authority hinged its directive on a 'presidential directive' despite guidelines by the intergovernmental steering committee that recommended lowering the high cost of destination charges at the Port of Mombasa.
Further, Mbaluto said that the committee that was headed by President William Ruto and Council of Governor Ann Waiguru also recommended lower fees to ease of doing business.
"The notice, to the extent that it relates to charges and costs imposed by the petitioner's members on their customers, would have a direct and deleterious impact on their businesses as it would limit their income and impede cash flows thus disrupting the flow of business and would hinder the growth of the maritime industry at the port of Mombasa," argued Mbaluto.
Mbaluto termed the new charges as draconian, injurious, unfair, and illegal.
Clients' protest
According to him, the agency remained silent even after his clients wrote to protest against the new charges.
He asserted that the move would eventually kill Mombasa Port's competitiveness.
In addition, the lawyer argued that the new charges are against the law as the KMA's director general has no power to issue mandatory guidelines.
He said that consultative engagements between the maritime industry players and the government were superficial as the agency issued a notice that contradicted the agreements.
This comes as a separate case was filed to challenge new land transaction charges. The case was filed by the Association of Real Estate Stakeholders.
The association's lawyer Robert Odanga argued that the new charges were too punitive, and were introduced without public participation and without any justification.
Odanga was of the view that it is ungodly and cruel to burden Kenyans who are already bearing the pains of Kenya Kwanza's hyper-taxation.
According to him, the new rates are an outright abuse of political power, which intends to alienate land from the poor majority.