Importers Brace for Tough Times as Import CBM Rates Soar

Kenyan traders, particularly those who import goods from China, are set to experience tough times over a potential increase in customs clearance costs at the port of Mombasa.

A noticeable change in an adjustment in Cubic Metre (CBM) charges is set to directly affect importers, especially those who primarily rely on sea transport to ferry their merchandise from abroad.

One reputable shipping and freight company recently informed customers via a chain text message about the possible changes in CBM charges, citing the move to increased charges at the port.

Other freight firms are reportedly issuing similar updates to their customers indicating a wider worrying trend of escalating import expenses.

Hiked shipping costs at the Mombasa port are nothing new. In fact, the Kenya Ports Authority (KPA) announced in January that there would be an increase in key port charges after reviewing charges (KPA Tariff 2012 ) for marine services and ship dues, stevedoring services, shore handling, wharfage and storage services and charges for general services.

The bigger picture: As far as the import business is concerned, traders’ biggest concern is usually the customs fees, which make up a large chunk of their expenses. An increase in CBM charges will likely push up the price of imported goods –  a dynamic that will have a ripple effect on the final consumer.

One specialist in imported products from China exclusively told Kenyans.co.ke that traders, particularly those dealing in household items imported from China and the Middle East, were already re-strategising ahead of tough times.

“I have not received a message from my shipping company yet,” Winny, a dealer in imports based in the Nairobi CBD revealed. “However, I can say for a fact that the cost of my products has increased in the past year.”

According to the business lady, her items used to be cleared at customs for Ksh40,000 less than a year ago. Today, the same items are cleared for Ksh53,000.

The conundrum for traders is striking the balance between selling their products at an affordable price to avoid losing their customers, and still making sustainable profit for the long term with biting economic times in mind.

While reasons for increased customs clearance costs vary, congestion at the port of Mombasa is among the most prevalent. In January 2024, one of the largest container shipping companies announced a surcharge that was meant to address delays caused by congestion at the port.