Kenya Ports Authority (KPA) and the Kenya Pipeline Company (KPC) on Thursday signed a strategic cooperation agreement aimed at boosting operational efficiency and safety at the Port of Mombasa oil terminals.
The partnership is a significant milestone in inter-agency collaboration through rehabilitation of the firefighting system at Pump Station No. 14 at the new Kipevu Oil Terminal, officials said.
The signing of the agreement by KPA Managing Director Capt. William Ruto and his KPC counterpart Joe Sang demonstrate the organizations’ commitment to strengthening critical infrastructure for Kenya’s petroleum logistics and energy security, KPA said.
Rooted in a long-standing relationship that predates the commissioning of the modern Kipevu Oil Terminal II (KOT II), this collaboration aligns with the expansion of key port facilities facilitated by the new terminal, including the connection of Berths 14 and 16.
Capt. Ruto described the partnership as a major step forward for national infrastructure and safety systems.
The MD emphasized that the initiative reflects the government’s commitment to fostering collaboration among state corporations to advance Kenya’s development agenda.
Sang said they aim to ensure efficiency in their operations for the benefit of the country and region at large.
“Efficiency is key for development in the country and the region,” he said.
KPA officials also met with Kenya Revenue Authority representatives to discuss Transfer of Long Stay Containerized cargo and agreed long stay containerized cargo at the Port will be transferred to customs licensed peripheral facilities.
Containerized Cargo destined for Mombasa will be transferred to CFSs for final clearance while those destined for Nairobi and other upcountry destinations will be railed to the Nairobi ICD for customers to undertake clearance processes.
Containerized cargo destined for Uganda will be transferred to Naivasha Inland Container Depot (NICD)
for customers to undertake clearance processes and in a bid to encourage evacuation of containerized cargo, KPA and KRA will waive 100% of accrued storage and warehouse rent for long stay cargo upon lodgment of waiver application by the affected customers for a period of 30 days.
“Considering the prevailing circumstance, shipping lines are directed to waive container detention and accrued
demurrage charges for the exercise to be successful. All primary port charges, rail freight charges, shipping line fees and statutory taxes remain payable,” a statement said.
KRA will determine all cargo qualifying for auction and sustain gazettement of the consignments for importers to clear, failure to which, the cargo shall be auctioned.
Approved cargo for destruction will be transferred to licensed cargo destruction sites and all cargo going through SCT regime will be exempted from RECTS e-seals exclusion arming processes, based save for specified on risk assessment, the statement added.
Importers were encouraged to nominate a CFS of their choice failure to which KPA will nominate the consignments to any of the CFSs in the vicinity of the Port.
”All container interventions by PGAs will be undertaken outside the Port in alignment with government directive on multiagency interventions where all interventions are resolved within five days.”
“KRA will implement the Pre-Arrival Processing (PAP) of cargo. In the medium term, the Government has put in place measures align all policy actions and system digitalization initiatives tol provide long term port efficiency to ensure the Port of Mombasa remains the Region’s preferred port of choice,” the statement added.
Meanwhile, Capt Ruto held talks with a delegation from Japan-based Konoike Transport Limited to explore new areas of collaboration, particularly in infrastructure development within key port facilities.
Capt Ruto said Kenya and Japan share warm and longstanding relations anchored in mutual respect and shared interests.
He noted that the discussions opened opportunities for deeper cooperation in improving port infrastructure and related services.
Konoike’s General Manager for International Logistics (Tokyo branch), Michimasa Hirasa, acknowledged that the talks were critical in strengthening investment ties between the two countries.
RTW Shipping and Logistics Limited, represented by Mujtaba Akram, also took part in the dialogue held at the Managing Director’s office at the Authority’s headquarters.
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