Carriers, Kenya govt oppose Mombasa cargo tax

[MOMBASA] Proposals by a local authority to impose new taxes on cargo at Kenya's main port has drawn opposition from the government and carriers, saying it will hike import prices and make the east African trade hub less competitive.

The government, keen to see off emerging competition from regional rivals, has been striving to improve efficiency at Mombasa port, the congested gateway that serves Kenya and landlocked states such as South Sudan, Uganda and Rwanda.

Customs reforms and other steps have cut transit times and costs, but government officials and carriers say such gains could be undermined if the local authority succeeds in imposing extra taxes using revenue-raising and other powers granted to Kenya's regions under a 2010 constitution.