Port players protest levy on nuclear screening

Kenya's port operators are mobilizing against a newly imposed nuclear screening levy at the Port of Mombasa, warning that the additional cost will erode the facility's competitive advantage across East Africa and amplify existing infrastructure bottlenecks.

## What is Kenya's nuclear screening levy and why is it controversial?

The levy, introduced to enhance radiological security screening at the port, has triggered strong pushback from shipping lines, freight forwarders, and terminal operators who argue it represents another layer of cost on already-strained logistics chains. Port players contend the charge lacks transparency regarding revenue allocation and cumulative impact on container economics. For context, Mombasa handles approximately 28 million tonnes of cargo annually and serves as the primary gateway for landlocked nations including Uganda, Rwanda, and South Sudan—making cost competitiveness a strategic priority.

The nuclear screening initiative itself is not new globally; ports from Singapore to Rotterdam employ radiological detection to comply with International Atomic Energy Agency (IAEA) standards and prevent illicit nuclear material trafficking. However, Kenya's implementation appears to lack phased cost-sharing or operational efficiency measures that typically accompany such systems internationally. Port stakeholders argue the screening infrastructure should be funded through government budgets or absorbed into existing terminal concession agreements, rather than passed as direct user charges.

## How does this levy affect regional trade dynamics?

The timing is particularly sensitive. East African ports are already competing fiercely for container traffic as the region's import-export volumes grow at 6-8% annually. Tanzania's Port of Dar es Salaam and Uganda's Port of Mombasa alternative (via South Sudan) have begun aggressive terminal modernizations and tariff reductions. Adding a nuclear screening surcharge—estimated at USD 20-50 per container—makes Mombasa less attractive for cost-sensitive routes, particularly for regional traders moving consumer goods, agricultural products, and manufacturing inputs.

Shipping lines are particularly vocal. They note that Mombasa already suffers from chronic congestion, with average port dwell times of 4-5 days compared to 2-3 days at competitive regional hubs. Additional screening processes—even with modern equipment—risk extending clearance times further, raising demurrage costs for importers and exporters.

## When will the levy take effect and what is the path forward?

Port operators are calling for a 90-day moratorium to allow stakeholder consultation, transparent costing audits, and potential phased implementation. Kenya Ports Authority (KPA) and the government have not publicly announced delay or revision timelines, though industry pressure is mounting. The Kenya Shippers Council and East African Business Council have both issued formal objections.

The broader implication: Kenya risks pushing trade toward Dar es Salaam or Djibouti if cost competitiveness erodes further. For investors in manufacturing, logistics, and import-dependent sectors, port efficiency directly affects supply chain margins—a 5% cost increase at Mombasa could shift sourcing decisions away from Kenya-based operations.

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