In a move aimed at boosting revenue from coastal waters, the state has unveiled new freight rates. State officials disclosed Wednesday that Kenya annually expends Kshs 600.0 billion on freight rates, primarily directed towards payments to foreign shipping lines.
This announcement was made in the lead-up to the Africa Maritime Cabotage and Blue Economy Conference scheduled from the 8th to the 10th of this month in Mombasa, Kenya.
The newly introduced National Maritime Transport Policy, set to be integrated into Cabotage laws, is designed to empower local shipping lines, granting them exclusive rights in Kenyan imports and exports and restricting international shipping lines from accessing local waters. In collaboration with other local stakeholders in the industry, the new Cabotage law will permit local vessels to transport cargo along the local coastline.
This policy is anticipated to invigorate the coastal economy, safeguard the local shipping sector, and create employment opportunities for the youth in the coastal region and the entire country. Currently, the East African region heavily relies on foreign shipping lines for both import and export operations.
Dr. John Omingo, Director General of the Kenya Maritime Authority, emphasized, “Our maritime cabotage can commence in shallow waters, expanding to deep waters and, eventually, continental waters. We pay over Kshs 600.0 billion annually to foreign shipping lines for our import and export needs.”
Moreover, the utilization of local shipping lines is expected to provide substantial benefits through the stimulation of local industries.
The implementation of maritime cabotage is anticipated to curb activities such as poaching, piracy, smuggling, and illegal fishing. It was also stressed that local investors should consider venturing into the shipping industry. Furthermore, the cabotage policy aims to enhance security along local boundaries through effective patrolling.
The introduction of cabotage promises significant gains, particularly for the coastal region. This initiative is poised to create numerous job opportunities and make a substantial contribution to the national revenue, benefitting the entire country.
