A months-long dispute between Kenya and Uganda in 2023 significantly impacted cargo movement through Mombasa Port.
This rift decreased over 200,000 metric tonnes of cargo transiting through the port compared to the previous year. Notably, Uganda, historically the leading contributor to Mombasa’s transit traffic, witnessed a decline of over 200,000 tonnes itself. The root of the problem stemmed from a diplomatic feud concerning fuel imports. This disagreement negatively affected the occupancy rate of Kipevu Oil Terminal 2 in Mombasa.
The dispute extended beyond the oil sector, leading to an estimated loss of Sh10.4 billion (approximately $200 million) in Kenyan exports to Uganda during the final quarter of 2023. Further complicating matters, Uganda, Kenya’s largest trading partner, took legal action against Kenya regarding an oil importation deal. This action further hampered the volume of oil flowing through Mombasa. Tensions escalated when Uganda accused Kenya of obstructing the issuance of a license by the Energy and Petroleum Regulatory Authority.
This permit is critical for transporting Ugandan oil via Mombasa. Fortunately, recent diplomatic efforts have yielded a resolution marking a turning point in the relationship between the two East African nations. Kenya is optimistic that this newfound harmony will translate into a revitalized transit cargo business with Uganda. Despite the challenges posed by the Kenya-Uganda rift, Mombasa Port displays resilience. The Kenya Ports Authority’s (KPA) annual report for 2023 highlights a rise in cargo shipments from other regional states.
Kenya strategically capitalized on inefficiencies at the port of Dar es Salaam, leading to an increase in cargo volume from Tanzania. Additionally, cargo destined for South Sudan and the Democratic Republic of the Congo also saw a significant upswing. This diversification of cargo sources ultimately contributed to a positive outcome with Mombasa port experiencing an impressive 11.9% growth in overall cargo handling capacity for 2023.
The Port of Mombasa, a bustling maritime hub, boasts an impressive array of equipment and infrastructure facilitating efficient cargo handling operations. Its fleet comprises an extensive collection of specialized machinery, including 16 ship-to-shore gantries, 25 reach stackers, 27 empty container handlers, 58 rubber-tyred gantries, and eight rail-mounted gantries. These state-of-the-art resources ensure seamless operations and enable the port to effectively manage the vast volumes of cargo passing through its premises.
Three new ship-to-shore gantries have been acquired and strategically positioned at Berth 22 in a recent development aimed at further enhancing the port’s capabilities. This addition not only augments the port’s handling capacity but also signifies its commitment to continuous improvement and modernization. Furthermore, Kenya Ports Authority (KPA) is actively collaborating with various partners to streamline operations and reduce the associated costs for transit market customers.
